An economic expansion causes
a. the federal budget deficit to rise.
b. federal government tax receipts to fall.
c. federal government spending to rise.
d. transfer payments to fall.
e. transfer payments to rise.
D
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Since the 1960s, the share of the labor force that is unionized in the United States has
A) increased except for the government sector. B) increased. C) declined. D) declined except in the private sector.
If the government requires a natural monopoly to price at marginal cost:
a. monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. b. monopoly firms will operate at a loss because P < AC. c. more firms will be able to enter the market. d. producer surplus will increase because quantity supplied is greater.