During recessions, government expenditure automatically
A) falls because of programs such as unemployment insurance and Medicaid.
B) rises because of programs such as unemployment insurance and Medicaid.
C) falls because of the progressive income tax system.
D) rises because of the progressive income tax system.
Answer: B
You might also like to view...
If the elasticity of demand for the latest American Idol album is 1.4, this means
A. few substitutes for the American Idol album exist. B. a 10% decrease in the price leads to a 140% increase in quantity demanded. C. a 5% increase in the price leads to a 7% decrease in quantity demanded. D. a 1% increase in the price leads to a 14% decrease in quantity demanded.
We measure GDP in different ways because
a. we can then check for errors and gain different insights into how the economy performs b. certain economists do not like the expenditure approach for GDP c. the expenditure equation ignores certain aspects of the economy d. it is too difficult to determine accurate values of consumption and investment e. the particular situations of different countries require different approaches
In the first calendar quarter a company issues a surprising report saying that it expects profits to rise in the fourth quarter. The theory of efficient markets says we should expect the price of the company's stock to:
A. rise around the third quarter since this information will take time to disseminate. B. rise immediately on the expectation of higher profits in the future. C. fall immediately as stockholders will be disappointed about having to wait until the fourth quarter for higher profits. D. rise in the fourth quarter when the higher profits are actually seen.
To maximize profit a perfectly competitive firm supplies a good up to the point at which
A. the marginal revenue is higher than the marginal cost. B. the marginal cost of producing the good is zero. C. the average revenue equals average cost. D. the price of the good equals marginal cost.