Fernando decides to buy more land for his avocado farm. Which of the following situations most likely triggered his decision?
a. an unreliable market
b. a profitable market
c. a stagnant market
d. a declining market
b. a profitable market
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What are the automatic stabilizers the United States has in place, and how do they function differently from discretionary fiscal policy?
What will be an ideal response?
Refer to the scenario above. If each family pays 12% of its income as tax every year, the local government follows a(n) ________ tax system
A) cardinal B) ordinal C) progressive D) proportional
Refer to the scenario above. Which of the following is likely to be true if the game is played only once?
A) The equilibrium outcome will be a Nash. B) The equilibrium outcome will be socially inefficient. C) No unique equilibrium will occur. D) Multiple Nash equilibria will occur.
An unregulated paint factory that pollutes a river results in ______ and _____
A. overproduction; a price that exceeds the marginal benefit from the good B. underproduction; a price that equals the marginal benefit from the good C. the efficient quantity produced; a marginal benefit equal to the mar-ginal social cost D. an inefficient quantity produced; a marginal benefit below the mar-ginal social cost