A recession tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________

Which of the following is a direct tax?

a. excise tax b. tax on corporate profits c. property tax d. sales tax

Rational people make decisions at the margin by

a. following marginal traditions. b. behaving in a random fashion. c. thinking in black-and-white terms. d. comparing marginal costs and marginal benefits.