Due to Automatic Stabilizers, When the Nation's Total Income Rises

question 108

Multiple Choice

Due to automatic stabilizers, when the nation's total income rises, government transfer spending

• A) increases and tax revenues decrease.
• B) decreases and tax revenues increase.
• C) and tax revenues decrease.
• D) and tax revenues increase.

---

Definitions:

Status Quo Pricing

A pricing strategy where prices are set similar to competitors or kept the same over time to maintain the existing market position.

Pricing Structure

The strategic arrangement of prices within a company's portfolio of products or services, aimed at achieving financial goals and market competitiveness.

Fares

The prices paid for journeys on public transportation like buses, trains, and airplanes.

Break-Even Point

The point at which the number of units sold generates just enough revenue to equal the total costs; at this point, profits are zero.