Which of the Following Effects Takes Place as a Result

question 28

Multiple Choice

Which of the following effects takes place as a result of automatic stabilization?

• A)extra tax revenues are generated in a boom
• B)tax revenues remain constant during a recession
• C)leakages increase during a recession,helping to stimulate the economy
• D)Both A and C are correct.

Recognize the role of top management in strategic planning and execution.

Differentiate between the concepts of mission statement, corporate strategies, and competitive strategies.

Identify strategies used by organizations in response to different market and competitive conditions.

Understand the implications of organizational design choices on HR functions.

---

Definitions:

Tariff

A tax imposed on imported goods and services, intended to increase the cost of imported items and protect domestic industries from foreign competition.

Price

The fund requirement for the acquisition of a good or service.

Free Trade

Global trade allowed to proceed without any tariffs, quotas, or limitations, following its natural flow.

Wagons

A four-wheeled vehicle typically used for transporting goods or passengers, historically drawn by animals.