Automatic Stabilizers Are Designed to

question 151

Multiple Choice

Automatic stabilizers are designed to

• A) promote global trade.
• B) simplify the tax system.
• C) moderate changes in disposable income.
• D) stabilize the bi-partisan budget process.

Analyze the impact of incentives on individual behavior in economic models.

Evaluate the role of government intervention in achieving economic efficiency and equity.

Understand the significance of resource allocation in determining standards of living.

Understand the concept of stress, its causes, and its physical and psychological consequences.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Price Per Unit

The cost of a single unit of product, which can be used to compare prices among similar products.

Market Growth Rate

The increase in size or sales of a specific market over a given period, typically expressed as a percentage.