Personal income taxes and transfer payments are examples of automatic stabilizers.
a. true
b. false
Answer: a. true
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A local pizzeria charges $10 for a pizza. The owner of the pizzeria wants to increase the company's total revenue. A recent market research shows that the price elasticity of demand for his pizza is about 1.5
Should the pizzeria lower or raise the price? Explain your answer.
What is Rawlsian justice?
What will be an ideal response?
Prospective sunk costs
A) are relevant to economic decision-making. B) are considered as investment decisions. C) rise as output rises. D) do not occur when output equals zero.
When increased demand raises the price of the product, the
A) marginal revenue product will also increase. B) marginal revenue product will fall. C) marginal revenue product will remain unchanged. D) sales will fall.