Author Question: Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon falls ... (Read 163 times)

javeds · **on:** Jun 30, 2018

Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon falls for some reason, then, everything else equal:
a. the price of sausage will rise.
b. the price of sausage will fall.
c. the resources used to raise pigs will become more expensive.
d. the demand for bacon will increase.

Question 2

The primary benefit of the automatic stabilizers is:
a. they provide public assistance through legislative decision making.
b. they require no new legislative action, so there is no legislative lag before these tools respond to fluctuations in the business cycle.
c. they require legislative action, so there is a lag in response to these tools to fluctuations in the business cycle, and there is time to identify the spillover effects.
d. none of the above.