If equilibrium GDP is greater than full employment GDP there is
A. an inflationary gap.
B. a recessionary gap.
C. both an inflationary gap and a recessionary gap.
D. neither an inflationary gap nor a recessionary gap.
A. an inflationary gap.
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Use the following diagram to answer the question.
Which of the following best depicts the change if apples are grown using better watering technology for the trees, which allows farmers to know if the trees are being over or under-watered?
A. shift from S1 to S2 B. shift from S2 to S1 C. movement from a to b D. movement from b to a
Which of the following would not violate the Sherman Antitrust Act if the rule of reason was used to interpret the act?
a. conspiring to monopolize b. formation of a trust company c. conspiring to restrain trade d. a single firm supplying all of a market with no close substitutes and some barriers to entry e. attempting to restrain trade with a foreign nation
Which of the following is an example of an excise tax?
a. a tax on the wages that a firm pays its workers b. a tax on tobacco c. a tax on corporate profits d. the portion of federal income taxes earmarked to pay for Social Security and Medicare
Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.
Fill in the blank(s) with the appropriate word(s).