Which of the following is the best example of an automatic stabilizer?
a. a balanced federal budget
b. the minimum wage
c. unemployment compensation program
d. discretionary fiscal policy
C
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Use the following information to answer the next question.Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 each. Of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. The explicit costs of Harvey's firm in the first year were
A. $655,000. B. $605,000. C. $825,000. D. $150,000.
Social Security tax is deducted from your paycheck. In the figure above this will be shown as
A) taxes flowing from households to governments. B) taxes flowing from firms to governments. C) taxes flowing from households to firms. D) wages flowing from firms to households. E) wages flowing from firms to governments.
If a monopsonist's labor supply curve is positively sloped, the marginal factor cost (MFC) will exceed the wage rate
a. True b. False Indicate whether the statement is true or false
When it comes to enacting policy changes, loss aversion often leads to status quo bias because:
A. the resistance from those who stand to lose from the policy often overwhelms the support from those who stand to gain. B. people's estimates of their gains from the policy are often too large. C. people's estimate of their losses from the policy are often too small. D. the support from those who stand to gain from the policy often overwhelms the resistance from those who stand to lose.