Which of the following best describes the idea of a political business cycle?
a. Politicians have a bias to cut taxes and increase government spending.
b. Special interests result in alternating federal deficits.
c. Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections.
d. Good intentions of politicians influence the business cycle.
c
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Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause
A) the labor force participation rate to decrease. B) the number of discouraged workers to increase. C) no change in the unemployment rate. D) the unemployment rate to decrease.
Which of the following will improve your bargaining position when contracting with a supplier
a. Your supplier merges with an another large supplier of the same product b. You redesign your product to be more feasibly accepting of many suppliers' parts c. You redesign your product so that your preferred supplier is more integral to product success d. Your supplier's chief competitor has exited the market
Which of the following marketing pieces takes the concept of marginalism into account?
A) If a company's gross revenues are declining, it should increase its spending on advertising. B) Computers, monitors and other technical equipment in local dumps are causing $1 million dollars in environmental damage. Vote yes to allocate $100,000 in cleanup spending. C) Help save the manatees. Contribute to the campaign to raise $10,000. D) Contribute $50 annually to the Heifer Foundation and give a chicken to a family living in poverty. This gift will help generate an additional $100 in household income through the sale of the eggs produced.
An externality refers to the idea that
A) explicit costs differ from implicit costs. B) decision-makers do not internalize all the costs. C) we cannot do anything that does not affect other people. D) private and internal costs differ.