Personal income taxes and transfer payments
A) acts as automatic stabilizers.
B) magnify fluctuations in GDP.
C) are discretionary fiscal policy tools only.
D) are influenced by monetary policy.
Answer: A) acts as automatic stabilizers.
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Property rights assure people that
A) the government will not confiscate their income or savings. B) the government will provide a minimum standard of living. C) the factors of production and goods are owned jointly by the government and the people. D) economic growth will enhance government involvement in the economy. E) international trade will be limited.
What is the most common type of business?
A) partnership B) corporation C) sole proprietorship D) They are equally represented because of federal laws.
If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the
A) product market. B) dairy products market. C) factor market. D) output market.
A production function tells the firm
A) the maximum it can expect to produce with a given mix of inputs. B) the average it can expect to produce with a given mix of inputs. C) the minimum it can expect to produce with a given mix of inputs. D) the average level of production for other firms in the industry.