Automatic stabilizers
A. are never altered.
B. must be determined by the Congress in each budget.
C. work counter-cyclically to moderate the business cycle.
D. often make any downturn in the economy worse.
Answer: C
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A distinguishing characteristic of public transfer payments is that they ________.
A. involve no contribution to current production in return for the payment B. include the cost of maintaining public parks C. are counted as part of government purchases in the calculation of the gross domestic product D. include wages to government workers
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out. B) be bowed in. C) be a straight line. D) not exist.
If firms are producing at a profit-maximizing level of output where the price is equal to the average total cost:
A. average total cost must be minimized. B. economic profits must be zero. C. accounting profits must be positive. D. All of these are true.
The best option to control the behavior of a natural monopoly is to use public ownership of the monopoly
a. True b. False Indicate whether the statement is true or false