Which of the following is a discretionary fiscal policy action?
A. a progressive tax system that leads to an increase in income tax revenues from the rich
B. an increase in Supplemental Security Income payments when more people become eligible for the benefits
C. an increase in the amount of unemployment compensation because more people become unemployed
D. a deliberate tax increase when the economy experiences high inflation
Answer: D
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If the price of a firm's output rises, its
A) marginal product of labor increases. B) value of marginal product decreases. C) demand for labor increases. D) demand for labor decreases.
International trade based on the concept of comparative advantage allows trading partners to be better off than if they did not trade
a. True b. False
A cartel is an agreement
A) among firms to flood the market and eliminate competition. B) among firms to steal industrial processes from rival firms. C) among firms to decrease output and raise price. D) by the government to restrict imports.
________ protection, similar to the escape clause in U.S. law, refers to temporary protection given to local industries facing competition from fairly traded foreign products
A) Safeguards B) Countervailing duty C) Fair trade D) Competitive trade