If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck.
B. buy fewer soft drinks with his paycheck.
C. no longer afford pizza on his paycheck.
D. Either A or B is possible.
Answer: A
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The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget
a. should require actual deficits be equal to zero on average. b. should go into a surplus at appropriate points in the business cycle. c. cannot have a structural deficit component. d. Both a and b e. None of the above
Which of the following can be a signal of product quality to customers?
a. Discounts offered on bulk purchases of the product. b. Gift of complementary products offered to purchasers. c. The information provided by the salesperson about the product. d. A warranty provided along with the product.