Which of the following is a discretionary fiscal policy action?
A) a progressive tax system that leads to an increase in income tax revenues during an economic boom
B) a deliberate tax cut when the economy experiences high unemployment
C) an increase in the amount of unemployment compensation because more people become unemployed
D) an increase in Supplemental Security Income payments when more people become eligible for the benefits
B
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If $1,000 is placed in an account earning 8% annually, the balance at the end of seven years will be
A) $1,080. B) $1,560. C) $2,000. D) $1,714.
Which of the following statements concerning a monopolist is FALSE?
A) A monopolist will produce at which MR = MC. B) For a monopolist, marginal revenue is less than price. C) A monopolist will charge the highest price at which any individual will purchase the product. D) A monopolist will shut down if price is less than average variable cost.
There is a shortage in a market for a product when:
a. The increase in demand is greater than the increase in supply b. Quantity demanded is less than quantity supplied c. Quantity demanded is greater than quantity supplied d. The increase in supply is greater than the increase in demand
Economists no longer attack industry concentration with the same fervor they once did because
A. small firms do the most research in the United States. B. the benefits of product differentiation and product competition are illusory. C. even firms in highly concentrated industries can be pushed to produce efficiently under certain market circumstances. D. substantial economies of scale result in completely competitive market structures.