In early 2008, the housing crisis and rising oil prices increased the risk of recession in the United States. What fiscal policy action was taken by Congress and the president to counter these events?
A) Income taxes were raised to reduce the federal budget deficit and reduce interest rates.
B) Taxpayers were given rebates on taxes they already paid.
C) There was an increase in government spending on defense and unemployment compensation.
D) The Federal Reserve cut its target for the federal funds rate.
B
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Based on the data in the above table, the product exhibits
A) external benefits. B) external costs. C) no externalities. D) increasing returns.
How do economies of scale contribute to the development of an oligopoly?
A) Economies of scale make it legally difficult for new firms to enter. B) Economies of scale make small-scale producers inefficient. C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry. D) Economies of scale are guaranteed when a patent is granted.