During recessions, government expenditure automatically
A) rises because of programs such as unemployment insurance and Medicaid.
B) falls because of programs such as unemployment insurance and Medicaid.
C) falls because of the progressive income tax system.
D) rises because of the progressive income tax system.
A
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Sandra consumes two goods–tea and coffee. Her demand for tea is inelastic while her demand for coffee is elastic. If there is an increase in the price of both tea and coffee, ________
A) Sandra's expenditure on both tea and coffee is likely to increase B) Sandra's revenue on both tea and coffee is likely to decrease C) Sandra's expenditure on tea will increase and her expenditure on coffee will decrease D) Sandra's expenditure on coffee will increase and her expenditure on tea will decrease
Long-run producer surplus in a perfectly competitive industry accrues mainly to:
a. suppliers of inputs with inelastic supply curves. b. suppliers of inputs with elastic supply curves. c. firms' owners. d. marginal consumers.
The basic principles of economics are Select one:
a. Important only to professional economists. b. Always complex. c. Necessarily abstract. d. Reflective of common sense.
Structural unemployment results when:
A. the minimum wage is set to increase in the near future. B. there is generous unemployment insurance. C. workers are temporarily laid off due to weather conditions. D. the real wage is above its market-clearing level.