Taxes and transfer payments automatically reduce fluctuations in real GDP and thereby stabilize the economy without any need for decisions from Congress or the White House
Indicate whether the statement is true or false
TRUE
You might also like to view...
Markets can be least well-defined by
a. product similarity b. location c. price elasticity d. cross-price elasticity e. degree of firm interdependence
When calculating gross national income (GNI) in an open economy, we adjust gross national expenditure (GNE) by
a) adding exports and subtracting imports b) adding net factor income from abroad (NFIA) and adding trade blance c) adding net factor income from abroad d) adding net factor income from abroad (NFIA) and adding net unilateral transfers (NUT)
In what way does monopolistic competition favor consumers?
A) A limited number of sellers differentiate their products or services by offering better quality items and/or greater incentives to purchase them. B) A large number of sellers providing virtually identical products means that no single seller can set the price. C) A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices. D) A single seller or provider ensures consistency of product quality and regulated pricing. E) A large number of sellers of virtually identical products means that no single seller can set the price for these products.
Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. Suppose the campus transportation director offers Matt $50 per hour. Will Matt accept this job?
A. No, accepting the job means a negative economic surplus for Matt. B. Yes, although accepting the job means a negative economic surplus for Matt, it's still better than having no job. C. No, although accepting the job means a positive economic surplus for Matt, still it's not the best option for him. D. Yes, accepting the job means a positive economic surplus for Matt.