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1)Which of the following is the best example of an automatic stabilizer?
A) Welfare Payments
B) Foreign aid
C) Defense Spending
D) Highway construction
2)Unemployment compensation is an example of a (an):
A) discretionary stabilizer
B) countercyclical stabilizer
D) procyclical stabilizer
E) seasonal stabilizer
F) automatic stabilizer
3)The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
A) rational expectations school.
B) neo-keynesian school
C) supply-side school
D) new classical school
E) classical school
4) As the marginal propensity to consume (MPC) increases, the spending multiplier:
A) increases
B) decreases
C) remains constant
D) becomes undefinable Economics
A rise in the price of coffee beans, which is a material for a cup of coffee, is responsible for these observations.
Find the quantity, price and profits in equilibrium. Calculate the consumer surplus. Are consumers better off or worse off in this situation than in (a)?
What is the first order condition for profit maximization for firm 1? compute the optimum quantity x1 for firm 1 as function of quantities x2 and x3.
The box industry was perfectly competitive. The lowest point on long run average cost curve of each of identical box producers was dollar four, and this minimum point occurred at an output of 1,000 boxes every month.
Suppose that the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment?
How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.
When international hostilities increase, the United States government will sometime use trade sanctions instead of military action.
Calculate output, marginal cost, averagecost, price and profit at the average cost-minimizing activity level and calculate these values at the profit-maximizing activity level.
What is opportunity cost and describe with the help of an example, why assumption of constant opportunity cost is very unrealistic and also calculate point elasticity of demand
What sectors of the labor market are forecast to be the strongest in your region- locality What advice would you give young workers who are preparing to enter the workforce in a few years
In your own words, describe the law of demand through the income and substitution effects, using a price increase as a point of departure for your discussion.
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