Which of the following is an example of an automatic stabilizer?
a. Decrease in tax rates by Congress in times of unemployment
b. Decrease in tax rates by Congress in times of inflation
c. Increase in government defense spending during war
d. Increase in unemployment compensation during recession
e. Decrease in welfare programs during inflation
d
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Explain why firms' short-run marginal cost curves often initially decreases and then increases
What will be an ideal response?
The exchange-rate arrangement that emerged from the Bretton Woods conference is often referred to as the:
a. dollar exchange standard. b. euro exchange standard. c. gold exchange standard. d. silver exchange standard. e. flexible exchange rate standard.
In equilibrium which of the following happens if the U.S. imposes tariffs on power tools?
a. U.S. net exports rise b. the exchange rate falls c. U.S. production of power tools rises d. All of the above are correct.
If two groups disagree about a policy, a smaller group that experiences higher benefits per person can be:
A. as successful as a larger group with smaller benefits per person, but typically not more. B. more difficult to bargain due to the small size of the group. C. the one more likely to get its way. D. the one less likely to get its way.