On a graph showing the influence of automatic stabilizers on the economy, government expenditures on transfer payments and real GDP have a(n):
A. direct relationship as shown by an upward-sloping line G.
B. direct relationship as shown by a downward-sloping line G.
C. inverse relationship as shown by an upward-sloping line G.
D. inverse relationship as shown by a downward-sloping line G.
Answer: D
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In the figure above, the line of equality is
A) curve A. B) curve B. C) curve C. D) curve D.
In the scenario above, as a result of increased advertising, Talbot's average total cost
A) falls by $20 per coat. B) rises by $50 per coat. C) rises by $30 per coat. D) falls by $40 per coat.
All of the following countries come close to the free market benchmark except
A) Canada. B) Germany. C) North Korea. D) Singapore.
In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would
a. lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation. b. result in a variety of product prices, but overall GDP would be unaffected. c. be efficient if the wages were fixed at a high enough level. d. reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers.