Which of the following is a discretionary fiscal policy action?
A) a progressive tax system that leads to an increase in income tax revenues during an economic boom
B) a deliberate tax cut when the economy experiences high unemployment
C) an increase in the amount of unemployment compensation because more people become unemployed
D) an increase in Supplemental Security Income payments when more people become eligible for the benefits
B
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Accounting profit equals
a. explicit costs minus implicit costs b. economic profit minus implicit costs c. economic profit minus explicit costs d. economic profit minus explicit costs and implicit costs e. economic profit plus implicit costs
The marginal revenue product (MRP) is the:
a. value of the additional output that an extra unit of a resource can produce. b. cost of hiring an additional unit of a resource. c. extra cost of producing an additional unit of output. d. increase in total output when an additional unit of an input is hired. e. change in total revenue when an additional unit of a good is sold.