Because of automatic stabilizers, _____
a. fiscal policy focuses on maintaining an annually balanced budget
b. planning discretionary fiscal measures to reduce economic fluctuations is easy
c. government budget deficits are zero if averaged out over the entire business cycle
d. policy makers should be concerned less with balancing the budget annually
e. government budget deficits are smaller during expansions and larger during contractions
e
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When an input represents a small proportion of a firm's total costs, then
A) demand for the input will tend to be less elastic. B) the input demand will vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) output demand will be highly elastic.
In long-run perfectly competitive equilibrium, which of the following is false?
A) There is efficient, low-cost production at the minimum efficient scale. B) Economic surplus is maximized. C) Firms earn economic profit. D) Economies of scale are exhausted.