Because of automatic stabilizers, disposable income varies proportionately less than real GDP during periods of economic fluctuations
a. True
b. False
Indicate whether the statement is true or false
True
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The consumption schedule shows the relationship of household consumption to the level of
A. the marginal propensity to consume. B. investment. C. disposable income. D. saving.
Which of the following is a prominent solution to adverse selection in used-car markets?
A) An imposition of a tax on the sale of each unit in the used-car market B) The imposition of a price ceiling in the used-car market C) The imposition of a price floor in the used-car market D) Third-party certification of used cars
If T represents the size of the tax on a good and Q represents the quantity of the good that is sold, total tax revenue received by government can be expressed as
a. T/Q. b. T+Q. c. TxQ. d. (TxQ)/Q.
The analytical framework in which two or more individuals, companies, or nations compete for certain payoffs that depend on the strategy that others employ is
A) game theory. B) opportunistic behavior. C) the dominant equilibrium. D) the tit-for-tat equilibrium.