An inflationary gap exists when consumers
A. are saving more than businesses are investing.
B. and businesses are purchasing less than the economy is capable of producing.
C. and businesses are demanding more than the economy is capable of producing.
D. and businesses are demanding less than the full employment level of output.
Answer: C
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Explain why equalizing the marginal utility per dollar for all goods maximizes utility
What will be an ideal response?
Suppose fairness is defined as those who receive the greatest benefits from government should pay the most in taxes, then which of the following taxation systems would be consistent with this notion of fairness?
a. User fees for national parks. b. Gasoline taxes to fund highway maintenance. c. A tax on the poor to finance food stamps and other low-income assistance programs. d. All of the above are consistent.
Answer the following statement(s) true (T) or false (F)
1. The Water Quality Act of 1987 embodies revisions to the Clean Water Act of 1977. 2. The Coastal Zone Act Reauthorization Amendments (CZARA) addressthe development of coastal nonpoint pollution control programs. 3. In the wake of the BP Deepwater Horizon oil spill in the Gulf of Mexico, President Obama signed the Oil Pollution Control Act. 4. The Clean Water Act’s zero discharge goal was met in 1985. 5. The Clean Water Act’s no toxics in toxic amounts goal can be justified on economic grounds.
Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition and that the cost curves do not shift, the price of construction in a long-run competitive equilibrium will be:
A. $55 per square foot. B. $60 per square foot. C. $50 per square foot. D. In the long run no construction will be supplied at any price.