Which of the following is not an automatic stabilizer?
A. Defense spending.
B. Welfare payments.
C. Progressive income taxes.
D. Unemployment benefits.
Answer: A
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"If Michigan's electric utilities were allowed to use marginal cost pricing, it would lead to economic profits for these utilities." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Solow residuals are estimates of ________
A) deadweight loss B) the natural rate of unemployment C) aggregate productivity D) labor hoarding
Generally, if a nation imposes a tariff on imports,
a. part of the tax is paid by foreign exporters. b. the entire tax is paid by foreign exporters. c. none of the tax is paid by foreign exporters. d. the tax has no impact on the profits of foreign exporters.
A subsidy on a product will generate more actual benefit for producers (and less for consumers) when
a. the supply of the product is relatively inelastic. b. the supply of the product is relatively elastic. c. the demand for the product is relatively inelastic. d. either b or c is true