As the economy expands, tax revenues:
A. rise and transfer payments rise, causing the economy to expand by more than it would in the absence of automatic stabilizers.
B. fall and transfer payments rise, causing the economy to expand by less than it would in the absence of automatic stabilizers.
C. fall and transfer payments fall, causing the economy to expand by more than it would in the absence of automatic stabilizers.
D. rise and transfer payments fall, causing the economy to expand by less than it would in the absence of automatic stabilizers.
Answer: D
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The nation of Exland is considered a less-developed country and has the following characteristics. Which one is not typical of a less-developed country?
a. High illiteracy. b. High unemployment. c. Rapid growth of technology. d. Low growth in technology. e. Rapid population growth.
Which would be least likely to cause the production possibilities curve to shift to the right?
A. an increase in the labor force B. improved methods of production C. an increase in the education and training of the labor force D. a decrease in unemployment