An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ________ transfer payments and thereby ________ the income of some households
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
A
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When a temporary shock in the economy involves a restriction in supply ________
A) we refer to it as a negative supply shock B) a rise in commodity prices typically follows C) a reduction in output typically ensues D) all of the above E) none of the above
Which of the following is a long-run adjustment?
a. A new economics professor is hired on campus. b. General Motors increases its orders for steel. c. Microsoft cuts back its hiring of new graduates. d. Glow Electric disassembles one of its nuclear power plants. e. Texaco buys more crude oil to refine into gasoline.
Figure 34-7
?
In Figure 34-7, where AB represents the production possibilities of Pestoland and CD the production possibilities of Pastaland, Pastaland is
A. better at producing pasta and pesto than Pestoland. B. better at producing pasta, but relatively inefficient in producing pesto. C. relatively better at producing pasta than pesto. D. relatively better at producing pesto than pasta.
Taxes on a producing firm's ________ are meant to force decision makers to consider the full costs of their actions.
A. spillovers B. marginal production C. positive externalities D. total production