Which of the following is an example of built-in stability? As real GDP decreases, income tax revenues:
A. Increase and transfer payments decrease
B. Decrease and transfer payments increase
C. And transfer payments both decrease
D. And transfer payments both increase
B. Decrease and transfer payments increase
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In 2012, which of the following countries had the highest share of investment spending in GDP?
A) China B) France C) the United States D) Germany
When economic losses are present in a market, firms will tend to
a. exit from the market. b. raise their prices until the break-even point is reached. c. lower their prices, regardless of cost, so they can capture more of the market. d. increase output.
Pete owns a small store. He has noticed that when he is not at the store monitoring his employees, his revenue goes down. What are two changes Pete could make to wages he pays his employees to correct this problem?
Suppose Karl divides his time between making birdhouses and growing artichokes. Karl's friend recently gave Karl some new woodworking tools that greatly reduced the amount of time it takes Karl to make each birdhouse, but the new tools had no impact on the amount of time it takes Karl to grow artichokes. Thus, the new tools ________ Karl's opportunity cost of growing artichokes.
A. had no effect on B. halved C. decreased D. increased