When automatic fiscal stabilizers are in place, a shock that causes a fall in the level of economic activity automatically
a. results in a decline in the federal budget deficit that lessens the fall in income.
b. results in a rise in the federal deficit that lessens the fall in income.
c. requires the federal government to balance the budget.
d. will lead to a permanent increase in the budget deficit.
e. both a and b
B
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Over the past decade technological improvements that have lowered the cost of producing an automobile have increased
A) both the supply and the demand for automobiles. B) the supply but not the demand for automobiles. C) the demand but not the supply of automobiles. D) neither the supply nor the demand for automobiles.
Which of the following approaches does not offer an international dependence explanation of underdevelopment?
a. the false paradigm model b. the neoclassical counter-revolution c. the dualistic development model d. the neocolonial dependence model
World output will be maximized if each country
a. attempts to be self-sufficient b. specializes in producing those goods in which it has a comparative advantage c. specializes in producing those goods in which it has an absolute advantage d. reduces its consumption possibilities e. specializes in producing those goods for which it has the lowest demand
What is the relationship between an individual worker's labor supply and the market labor supply?
a. Market labor supply reflects the vertical summation of the opportunity cost for each worker supplying labor in the labor market at a given market quantity. b. Market labor supply reflects the vertical summation of the wage rates for each worker supplying labor in the labor market at a given market quantity. c. Market labor supply reflects the horizontal summation of the quantities of labor supplied by each worker supplying labor in the labor market at a given wage rate. d. Market labor supply is the horizontal summation of the wage rates for each worker supplying labor in the labor market at a given market quantity.