The federal budget deficit acts as an automatic stabilizer because
A) government tax revenues decrease during a recession.
B) unemployment insurance payments decrease during a recession.
C) food stamp payments increase during expansionary periods.
D) Medicaid payments increase during expansionary periods.
Answer: A
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In the long run, firms in a competitive market make zero economic profit. This induces most firms to leave the industry
Indicate whether the statement is true or false
For how many years does a Federal Reserve governor serve on a term?
a. 7 b. 10 c. 12 d. 14
Two nations, ECON and OMICS, each produce goods A and B. The table gives points on each nation's production possibilities curve.ECONOMICSABAB08024162182441232664080For OMICS, the opportunity cost of producing an additional unit of A is
A. 1 unit of B. B. 2 units of B. C. 3 units of B. D. 4 units of B.
Economics is best defined as the science of choice and how people cope with
A) differences in wants. B) differences in needs. C) scarcity. D) different economic systems.