Which of the following is an example of a discretionary fiscal policy action?
A. a decrease in tax revenues as taxpayers' incomes decrease
B. increasing the minimum wage rate
C. raising regulations in the banking industry
D. an increase in government spending to deal with a recession
Answer: D
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Bruce Copperwood's utility of wealth curve is illustrated in the above figure. Bruce is presently employed at a salary of $100,000. There is a 10 percent probability that Bruce will be totally disabled, in which case he will have no wealth
An insurance company (with no operating expenses) would be willing to offer Bruce a disability insurance policy paying $100,000 in the case of total disability for a minimum premium of A) $1,000. B) $10,000. C) $20,000. D) None of the above answers is correct.
It is possible for the government to remove individuals from a prisoner's dilemma setting and make them better off.
Answer the following statement true (T) or false (F)
A legal organization of a firm where the business is owned by one individual who makes the business decisions, receives all the profits, and is legally responsible for the debts of the firm is a(n)
A) corporation. B) entrepreneur. C) proprietorship. D) partnership.
Most spells of unemployment are short, and most unemployment observed at any given time is long-term
a. True b. False Indicate whether the statement is true or false