Other things the same, during recessions taxes tend to
a. rise. The rise in taxes stimulates aggregate demand.
b. rise. The rise in taxes contracts aggregate demand.
c. fall. The fall in taxes stimulates aggregate demand.
d. fall. The fall in taxes contracts aggregate demand.
c
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When the federal government installs a price support program that requires the government to purchase all of a good not bought in the private economy at the support price, the impact on total welfare is the
A) change in consumer surplus. B) change in consumer surplus + the change in producer surplus + the cost to government. C) change in consumer surplus + the change in producer surplus - the cost to government. D) change in consumer surplus + the change in producer surplus.
Suppose that with 1 unit of labor, Canada can produce 40 TVs or 20 computers. With 1 unit of labor, Taiwan can produce 30 TVs or 10 computers. Which of the following is correct?
a. Taiwan has a comparative advantage in the production of computers. b. Canada has an absolute advantage in the production of neither good. c. Canada has a comparative advantage in the production of computers. d. Taiwan has an absolute advantage in the production of computers. e. Taiwan has an absolute advantage in the production of TVs.
Which of the following is not a benefit to lenders of financial intermediation?
a. Higher liquidity than the direct market. b. Lower credit risks than the direct market. c. Lower liquidity risk than the direct market. d. Lower market risk than the direct market. e. All the above are benefits.
Fill out the table and answer the question below. 
Marginal product is negative when ________ units of labor are employed.
A. 5 units of labor are employed. B. 7 units of labor are employed. C. 6 units of labor are employed. D. both b and c.