An advantage of automatic stabilizers is that
A. they are built into the economy by legislation and therefore are already in place when economic conditions change.
B. they give the government an opportunity to spend extra tax money collected.
C. they intensify changes in the business cycle.
D. they produce balanced budgets.
A. they are built into the economy by legislation and therefore are already in place when economic conditions change.
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According to the figure above, which of the following events will increase the quantity demanded of bottled water?
A) a fall in the price of soda B) a rise in the price of a fitness club membership C) an increase in the number of buyers of bottled water D) a fall in the price of bottled water E) a rise in the price of bottled water
What are menu costs?
A) the cost to a household of borrowing money when there is deflation B) the opportunity cost of dining in a restaurant instead of at home C) the costs to a firm of changing prices D) the full list of a firm's costs of production
Government controls over industry
(a) limit overall net industrial growth. (b) help all industries. (c) lower consumer costs in the industries assisted by government. (d) encourage the destruction of inefficient and lagging industries.
Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils
Instead of consuming this bundle, Alfred should: A) buy more iced tea and less lemonade. B) buy more lemonade and less iced tea. C) buy more iced tea and lemonade. D) buy less iced tea and lemonade. E) none of the above is necessarily correct.