Automatic Stabilizers

question 271

Multiple Choice

Automatic stabilizers

• A) work counter-cyclically to moderate the business cycle.
• B) often make any downturn in the economy worse.
• C) must be determined by the Congress in each budget.
• D) are never altered.

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Definitions:

Marginal Revenue

The supplementary earnings obtained through the sale of one more unit of any good or service.

Total Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Profit Maximized

A state or point at which a business achieves its highest possible profit with its current resources and market conditions.

Coffee Farm

A farm where coffee plants are cultivated for their beans.