All of the following are automatic fiscal stabilizers EXCEPT
A) a congressionally mandated decrease in tax rates to stimulate the economy.
B) a decrease in unemployment compensation payments during an expansion.
C) a decrease in overall tax revenues during a recession.
D) an increase in unemployment expenditures during a recession.
Ans: A) a congressionally mandated decrease in tax rates to stimulate the economy.
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Which oligopoly model was developed to explain price wars in an industry?
a. natural oligopolies b. cartels c. price leadership by a dominant firm d. game theory e. cost-plus theory
Which of the following has occurred as a consequence of the Airline Deregulation Act of 1978?
a. Through mergers, airlines have formed an international cartel to restrict the number of flights and thus have successfully raised airline fares above the (inflation-adjusted) levels observed prior to deregulation. b. By 2000, airline fares were about 27 percent lower (in inflation-adjusted dollars) than before deregulation began, and there was a considerable increase in numbers of people flying. c. Deregulation weakened the power of airlines and strengthened the power of airline labor unions. Thus the Air Line Pilot's Association union was able to negotiate higher wages and a shorter work-month. d. Accident rates increased by 10 percent to 45 percent, depending on the specific measures used.
A derivative is a financial instrument that derives its value from another financial instrument, an underlying asset, or indices.
a. true b. false
The marginal revenue curve is below the demand curve
A. If a firm must lower its price to sell additional output. B. When a market is characterized by economies of scale. C. For a competitive firm. D. For all firms.