When the economy enters a recession, automatic stabilizers create:
a. higher taxes.
b. more discretionary spending.
c. budget deficits.
d. budget surpluses.
c
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Give an example of someone who works in a noncompeting labor market. Explain your choice
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $650, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?
A. 4 hours B. 2 hours C. 3 hours D. 1 hour
Of the following, which is the least likely to be an example of substitute goods?
A. beef and chicken B. soda and bottled water C. margarine and butter D. beer and pretzels
Explain why some argue that income tax loopholes primarily benefit the rich