An example of a procyclical fiscal policy is:
A. a balanced budget policy.
B. unemployment compensation.
C. welfare payments.
D. an income tax.
Answer: A
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An efficient tax is
A) a tax that raises a maximum amount of revenue. B) a tax that imposes a small excess burden relative to the tax revenue that it raises. C) a tax that imposes an equal tax burden on buyers and sellers. D) a tax that is used to fund research and development of new technology.
A noncooperative game situation may occur when
A) firms collude. B) firms find collusion too costly. C) firms merge. D) firms agree to price fixing.
Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."
As the price of flour (an input in the production of cookies) increases, firms that produce cookies will:
A. increase the supply of cookies. B. increase the quantity of cookies supplied. C. decrease the quantity of cookies supplied. D. decrease the supply of cookies.