When an economy dips into recession, automatic stabilizers will tend to
a. enlarge the budget deficit (or reduce the surplus).
b. reduce the budget deficit (or increase the surplus).
c. ensure that the budget remains in balance.
d. expand the supply of money and, thereby, stimulate aggregate demand.
A
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The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to ________
A) marginal external cost B) marginal external benefit C) external cost D) external benefit
An increase in the saving rate in a steady-state economy would cause
A) a rightward movement along the saving-per-worker curve and an increase in the capital—labor ratio. B) an upward shift in the saving-per-worker curve and an increase in the capital—labor ratio. C) a downward shift in the saving-per-worker curve and a decrease in the capital—labor ratio. D) a leftward movement along the saving-per-worker curve and a decrease in the capital—labor ratio.
Loopholes reduce the efficiency of the tax system.
Answer the following statement true (T) or false (F)
Economics could be defined as the study of scarcity
a. True b. False Indicate whether the statement is true or false