Command-and-control regulation is flexible

Author A accepts a $5,000 advance and a 10% royalty after 5,000 books are sold. Author B foregoes the advance and negotiates for a 15% royalty on all books sold. Author C decides to self publish his book and keep 50% of all sales revenue

Which of these authors expects to sell the fewest books? A) Author A B) Author B C) Author C D) They are all equally likely.

Which of the following statements is not true with regard to automatic stabilizers? a. The most important automatic stabilizer is the tax system

b. They act as shock absorbers to the economy. c. They require legislative action. d. Automatic stabilizers like government transfer payments change as business cycles conditions change.