Which of the following effects takes place as a result of automatic stabilization?
A) extra tax revenues are generated in a boom
B) tax revenues remain constant during a recession
C) leakages increase during a recession, helping to stimulate the economy
D) Both A and C are correct.
A
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The concept of economies of scale becomes especially _____________ to international trade when it enables one or two large producers to supply the entire country.
a. problematic b. unrelated c. relevant d. unproductive
In the 1990s, what reduced the barriers to entry in the local telephone market?
(A) The end of a twenty-year patent on telephone technology. (B) The deregulation of the local telephone industry. (C) The rising popularity of cellular phones. (D) The licensing of new, smaller phone companies.
In making labor supply decisions, ________ weigh the market wage against the value of leisure and time spent in unpaid household production.
A. households B. businesses C. financial markets D. None of the above is correct.
Broadly defined, competition involves:
A. private property and freedom of expression. B. independently acting buyers and sellers and freedom to enter or leave markets. C. increasing opportunity costs and diminishing marginal utility. D. capital goods and division of labor.