During recessions, even with no changes in policy, the deficit tends to ______ because _____________
Fill in the blank(s) with correct word
rise, income falls so tax revenues fall (and more people qualify for transfer payments such as unemployment insurance).
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The welfare analysis of advertising is controversial because evaluation of the effect of advertising on aggregate surplus depends on:
A. the marginal cost of the advertising. B. whether the inframarginal consumer is influenced by the advertising. C. whether the advertising is tied to a quality increase. D. the reason it succeeds in increasing demand.
Most of the growth in plastic card use has been in
A) credit cards. B) debit cards. C) online purchases. D) electronic transfer.
When an economy is in equilibrium,
A) planned expenditures exceed production and income. B) there is no savings nor investment. C) government tax revenues equal planned government expenditures. D) production and income equal planned expenditures.
Eli is headed to his job harvesting grapes at a local vineyard. He earns $8 every hour he works there. His friend calls him and asks him to go mountain biking for the next 2 hours instead. Eli cannot decide between the two activities. His indecision implies he values riding his mountain bike for two hours:
A. more than $16. B. less than $16. C. at exactly $16. D. at no more than $8.