Which of the following is an example of an automatic stabilizer during a recession?
A) A decrease in tax revenue due to an increase in unemployment
B) An increase in money supply due to a decrease in bank deposits
C) An increase in interest rates due to a decrease in investment
D) A decrease in inflation due to an increase in consumption
A
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Which of the following is an example of an intermediate good?
A. A new CD player sold to a teenager B. A new CD player sold to an automaker for installation in a car C. A metal-stamping machine used to produce cars sold to an automaker D. A new car sold to a family
To maintain a monopoly, a firm must have
A) an insurmountable barrier to entry. B) a perfectly inelastic demand. C) few competitors. D) marginal revenue equal to demand.
?The formula for "expected value" may be written as
A. ?(Probability of state A + Value in state A) × (Probability of state B + Value in state B) B. ?(Probability of state A × Value in state A) + (Probability of state B × Value in state B) C. ?(Probability of state A × Value in state A) – (Probability of state B × Value in state B) D. ?(Probability of state A – Value in state A) × (Probability of state B – Value in state B)
If the government attempts to control pollution with a command-and-control policy:
A. the government will command each firm to produce no more than a certain level of pollution. B. the government will control the firm's entire production process. C. the government will force the firm to use particular pollution-control technologies. D. All of these