Which of the following would decrease the size of a federal budget deficit?
a. A recession
b. An increase in defense spending
c. An increase in the use of automatic stabilizers
d. An increase in taxes
e. An increase in transfer payments
d
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How does the textbook's notion of competition as a process differ from the model of perfect competition?
A) The process notion allows for uncertainty and incomplete information; perfect competition doesn't. B) The process notion allows for price searching activity; perfect competition doesn't. C) The process notion allows for product differentiation; perfect competition doesn't. D) The process notion allows for a small number of participants; perfect competition doesn't. E) For all of the above reasons.
A normative statement is descriptive—it describes what happens and why it happens
a. True b. False Indicate whether the statement is true or false