Which of the following serves as an automatic stabilizer in the economy?
A. the progressive income tax
B. interest rates
C. exchange rates
D. the inflation rate
Answer: A
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From a strictly economic perspective, immigration should be:
A. Expanded until its marginal benefits equal its marginal costs B. Expanded until its total benefits equal its total costs C. Expanded as long as its marginal costs exceed its marginal costs D. Reduced if its marginal benefits exceed its marginal costs
An economy is judged efficient if
A. it is good at producing what people want. B. it produces things that people may not want but in the least wasteful way. C. produces whatever people want in a way that may not be the least wasteful. D. it is a free-market economy and not a command market.
The specialization of labor
a. leads to a reduction in unemployment b. means that less equipment will be employed when labor and capital are substitutes in production c. expands the output a society can produce d. decreases the costs to the firm of coordinating activities e. effectively separates labor from management
Frictional unemployment is often thought to explain relatively long spells of unemployment
a. True b. False Indicate whether the statement is true or false