The irregular and largely unpredictable fluctuations in economic activity are called
a. market failure.
b. business cycle.
c. inflation.
d. unemployment.
b
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Refer to Table 2-19. Which of the following statements is true?
A) Betty has an absolute advantage in making benches and Wilma in making statues. B) Wilma has an absolute advantage in making both products. C) Betty has an absolute advantage in making both products. D) Betty has an absolute advantage in making statues and Wilma in making benches.
The effectiveness of automatic stabilizers is limited by the fact that
A. Congress usually acts slowly in legislating changes in tax rates. B. The stabilizers tend to raise the average price level regardless of the phase of the business cycle. C. The offset that the stabilizers provide to a change in private spending is less than the change in private spending. D. Transfer payments and subsidies increase during inflation and decrease during recessions.
It is possible to purchase diplomas from diploma mills. The situation in which the degrees are more important than the knowledge they are supposed to represent is called:
A. accreditation. B. credentialism. C. cretinism. D. diplomacy.
Marginal utility can be
A) negative. B) zero. C) positive. D) positive, negative, or zero.