The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession are examples of
A) discretionary fiscal policy.
B) discretionary monetary policy.
C) automatic stabilizers.
D) automatic monetary policy.
C
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Most income tax revenues are collected by _____
a. the federal government b. state governments c. county governments d. city governments
If the Consumer Price Index (CPI) increases from 100 to 200 and the nominal wage increases from $100 to $400, what is the change in the real wage in terms of the beginning year's dollars?
a. +$200 b. +$400 c. +$100 d. +$300 e. -$200
If leisure is drawn on the horizontal axis and labor is drawn on the vertical axis, then a person who attaches more importance to leisure than to labor will have indifference curves that:
A. tend to be steeper. B. tend to be flatter. C. will be positively-sloped. D. will be L-shaped.
An important type of information asymmetry is:
A. ethical constraint. B. advantage imbalance. C. information withholding. D. moral hazard.