An economic expansion tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________
A) increase; rise; falls
B) increase; fall; rises
C) decrease; rise; falls
D) decrease; fall; rises
Answer: C
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Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of discretionary fiscal policy aimed at increasing
A) tax revenues and the federal budget surplus. B) the money supply and money demand. C) disposable income and interest rates. D) real GDP and employment.
Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, while only 17 sets are sold when 4 workers are employed. If the wage of workers in this skill category is $500 per week, should the fifth worker be hired?
a. No, because the MRP of the fifth worker is less than $500 per week. b. No, because the MRP of the fifth worker is more than $500 per week. c. Yes, because the MRP of the fifth worker is less than $500 per week. d. Yes, because the MRP of the fifth worker is more than $500 per week.
When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers
a. will increase only if the company can increase the price of its product. b. is likely to increase. c. is likely to decrease. d. will not change.
Unions in general, and teachers' union in particular, prefer that salaries be based solely on ________ of the worker.
A. education and income class B. gender and seniority C. education and seniority D. gender and education