During a recession, government deficits can grow because:
A. government spending often increases as part of an expansionary fiscal policy.
B. income tax revenues tend to decrease because people are earning less.
C. sales tax revenues tend to decrease because people are spending less.
D. All of these are true.
D. All of these are true.
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In the case of a small country, producer surplus
A) increases more with a tariff than with an equivalent quota. B) increases more with a quota than with an equivalent tariff. C) is not changed by tariffs or quotas. D) increases the same with tariffs and equivalent quotas. E) increases more with quotas.
A firm’s average fixed cost
A. does not vary with output. B. decreases as output rises. C. is equal to average cost when average cost is minimized D. causes marginal cost to rise as output rises.
Being "unequal" is seen as a more serious calamity that being poor
Indicate whether the statement is true or false
The distinguishing of products by brand name, color, and other attributes
A) is known as interdependence. B) is known as product differentiation. C) leads to many firms in the market. D) leads to collusion.