During a recession:
a. Government spending automatically rises and taxes automatically rise.
b. Government spending automatically falls and taxes automatically rise.
c. Government spending rises automatically and taxes fall automatically.
d. Government spending and taxes do not tend to change.
e. None of the above.
.C
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Which of the following is the most likely to cause the price of air travel to rise?
a. Lower prices and improved service in Amtrak (the nation's passenger railroad). b. Improved productive efficiency resulting from airline mergers. c. Higher airplane fuel costs. d. Reports that air travel safety is deteriorating.
Based on the figure above, which of the following factors could lead the supply curve to shift leftward from S0 to S1?
A) a rise in the U.S. exchange rate B) a fall in the U.S. interest rate C) a fall in the U.S. exchange rate D) a fall in foreign interest rates E) a rise in expected future U.S. exchange rate The figure above shows the market for foreign exchange in 2001 and 2009.
The matching function exhibits all of the following properties except
A) diminishing marginal product of labor. B) constant returns to scale. C) increasing in matching efficiency. D) increasing in inputs of searching consumers and firms.
An experience good is a product
A. that emphasizes the features of its product. B. with qualities that consumers lack the expertise to assess without assistance. C. that an individual must consume before the quality can be established. D. with characteristics that enable an individual to evaluate the product's quality in advance of a purchase.