An Example of an Automatic Stabilizer Is

question 221

Multiple Choice

An example of an automatic stabilizer is

• A) the progressive tax system.
• B) the decision of the President to cut taxes in a recession.
• C) the Congressional decision to increase unemployment benefits in a recession.
• D) the raising of taxes on cigarettes to discourage smoking to stabilize health-care costs.

Comprehend how regulation affects business operations and market structures.

Recognize the role of government in regulating natural monopolies.

Identify key legislation related to industrial and social regulation.

Understand the criticisms of regulatory policies.

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Definitions:

Breach of Contract

The violation of a contractual obligation by failing to perform one's own promise, by impeding another party's performance, or by otherwise making performance impossible.

Adhesive

Pertains to contracts or clauses that are one-sided or unfairly advantageous to one party, typically presented on a "take it or leave it" basis.

Art Gallery

A space or building where artworks are displayed and sometimes sold to the public.

Unconscionability

A doctrine in contract law that describes terms that are so extremely unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.