As a result of the action of automatic stabilizers,
A. the government budget changes offset changes in national income.
B. the government has had decreasing budget deficits over time.
C. taxes and government spending rise when the economy enters a recession.
D. taxes and government spending fall when the economy enters a recession.
A. the government budget changes offset changes in national income.
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The demand curve for a good that has many perfect substitutes in consumption is likely to be
a. upward sloping b. steep c. highly inelastic d. horizontal e. vertical
In a Lorenz curve diagram, the 45° line represents:
a. perfect income equality. b. zero inflation. c. a negative income tax. d. an extremely unequal distribution of income.
If the demand curve for X has twice the elasticity of the demand curve for Y, then for the same percentage decrease in price, the percentage increase in the quantity of X demanded would be twice that for Y
a. True b. False Indicate whether the statement is true or false
Competition reduces some but not all discrimination. Where can one expect competition to reduce discrimination, and where is discrimination likely to go on even if there is competition?