Government transfer payments act as automatic stabilizers because as labor income decreases, transfer payments

Under the VER of the 1980s, U.S. automakers:

a. continued their downward slide. b. could not recover because they were also faced with other issues, such as labor unrest, increased oil and steel prices, and higher taxes. c. were able to raise prices and improve quality to get even higher prices. d. were able, with the quota, to ignore world market conditions.

A $10 per-unit tax on cell phones raises the equilibrium price paid by consumers by $5. Before the tax, 5,000 cell phones were sold per year. The revenue from the tax is

A) zero. B) positive but less than $50,000 per year. C) $50,000 per year. D) more than $50,000 per year.