Active changes in tax and spending by government intended to smooth out the business cycle are called ______, and changes in taxes and spending that occur passively over the business cycle are called ______.
a. automatic stabilizers; discretionary fiscal policy
b. fiscal policy; automatic stabilizers
c. automatic stabilizers; monetary policy
d. fiscal policy; conscious fiscal policy
b. fiscal policy; automatic stabilizers
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The above figure shows the U.S. market for wheat. When there no international trade, the U.S. price of wheat is ________ per ton and the U.S. equilibrium quantity is ________ tons
A) $14; 300,000 B) $14; 500,000 C) $16; 500,000 D) $16; 300,000 E) $16; 700,000
Natural comparative advantage comes from factor endowments.
Answer the following statement true (T) or false (F)
One reason why the lowest wage rate is not necessarily the same as the efficiency wage is that workers might:
A. Be more productive at a higher wage rate B. Have more incentive to shirk at higher wage rates C. Be tempted to switch jobs more frequently at higher wage rates D. Be less inclined to work well at a higher wage rate
The market price for wallets is $20 . Your technology is such that at your most efficient production point, the average total cost of producing a wallet is $2.50 . Your manager runs into your office and shouts, "Boss! Average costs are rising! Average costs are rising!" To make a profit-maximizing decision, you should
a. definitely decrease production b. immediately stop production c. completely ignore your manager d. ask the manager about the marginal cost e. ask the manager about the average total cost