Which of the following is not an automatic stabilizer:
a. Personal income taxes.
b. Business profits taxes.
c. Welfare payments.
d. Government spending for new bridges and roads.
.D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Ownership of a necessary input creates what type of barrier to entry?
A) legal barrier to entry B) natural barrier to entry C) a public franchise D) a government license E) ownership barrier to entry
The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that
A. consumers are not aware of airline prices. B. consumer demand is unrelated to prices. C. consumer demand becomes more elastic as departure time approaches. D. consumer demand becomes less elastic as departure time approaches.
If Microsoft sells a bond in London and it is denominated in dollars, the bond is a
A) Eurobond. B) foreign bond. C) British bond. D) currency bond.