The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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In 2009, the Social Security System ran a surplus of approximately $137 billion.
Answer the following statement true (T) or false (F)
If the value of marginal product of a worker is $40 and the marginal product of the worker is 8 units, the market price of the good he produces is:
A) $2. B) $5. C) $8. D) $10.
When there are many buyers and sellers, no significant barriers to entry, and a differentiated product, the market structure is called
a. an oligopoly b. perfect competition c. monopolistic competition d. a monopoly e. unbalanced monopoly
Workers, rather than firms, bear most of the burden of the payroll tax
a. True b. False Indicate whether the statement is true or false