After a recent spike in violent crime, the local police department wants to spend $550,000 on a new crime fighting initiative. If a human life is worth $9 million, the crime fighting initiative is worth the cost if it reduces the risk of someone dying from crime by at least

Which of the following is the best example of an automatic stabilizer?

a. a balanced federal budget b. the minimum wage c. unemployment compensation program d. discretionary fiscal policy

Suppose the court system begins to make it easier for plaintiffs to win large payments from doctors and other medical professionals who are accused of malpractice. What result would you expect?

A. Doctors would order more diagnostic tests and treatment procedures even when the costs of those procedures exceed the benefits to the patient. B. Claims on medical insurance plans would probably fall. C. The cost of medical care would fall because doctors would avoid expensive tests and treatments. D. More people would seek training to become medical professionals because they would be able to make more money ordering tests and treatment procedures.