"Automatic stabilizers" played a part in reducing the length and severity of the recession of 1953-54 . Which of the following is an example of an "automatic stabilizer"?
a. Deficit spending by the federal government
b. Spending on education by local and state governments
c. Programs like unemployment insurance and Social Security
d. Actions by the Federal Reserve aimed at reducing interest rates
c. programs like unemployment insurance and Social Security
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In the short run, the point at which diminishing marginal returns to labor begin is the point at which the marginal cost curve
A) peaks. B) bottoms out. C) is upward sloping. D) is downward sloping.
Each of the following provides incentives to reduce a negative externality except:
a. a merger with affected firms. b. subsidizing consumption of the good being produced. c. bargaining among firms. d. taxation of the externality.
Which of the following describes the benefits of specialization in a free market?
The Lorenz curve
A. shows what portion of the population are living in poverty and what portion are living in wealth. B. shows what portion of the population is working as professionals, white- and blue-collar, workers and workers at menial tasks. C. breaks down the income levels of each group in the economy. D. shows what portion of total money income is accounted for by different proportions of the nation's households.