Automatic stabilizers "lean against the prevailing wind" of the business cycle because:
A. wages are controlled by the minimum wage law.
B. federal expenditures and tax revenues change as the level of real GDP changes.
C. the spending and tax multipliers are constant.
D. they include the power of special interests.
Answer: B
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The federal agency that monitors and regulates the stock market is the
A. Chicago Mercantile Exchange. B. Securities and Exchange Commission. C. Department of Justice. D. Federal Trade Commission.
The Coase theorem implies that an efficient solution is possible only if property rights are well-defined and transactions costs are low
a. True b. False Indicate whether the statement is true or false
Which of the following economic perspectives focuses on the need for government to use spending and taxes to shift aggregate demand and thus correct problems of unemployment and inflation?
A. Monetarists. B. Supply-side. C. Keynesian. D. Classical.
Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. 
Figure 8.8 Refer to Figure 8.8. At the market price of $8 per bushel, if this farmer produces the profit-maximizing level of soybeans, the profit would be
A. $0. B. $2,800. C. $5,600. D. $8,000.