The excess burden of a tax
A) is measured by the administrative costs required to implement a tax system.
B) is a measure of the foregone consumption as a result of having to pay taxes.
C) is a measure of the hardship imposed on low-income individuals in a society.
D) measures the efficiency loss to the economy that results from a tax, causing a reduction in the quantity of goods and services produced.
D
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The above figure shows the U.S. market for wheat. With international trade, ________ is the transfer of surplus from consumers to producers
A) area B + area C B) area D C) area C + area F D) area C + area D E) area B + area C + area D
The existence of stagflation in the 1970s undermined the credibility of demand-management policies
a. True b. False Indicate whether the statement is true or false
Which of the following is a difference between an active approach to close a recessionary gap and a passive approach to close a recessionary gap?
a. The level of real GDP would be higher in the long run with the active approach, while it will be lower with the passive approach. b. The level of real GDP would be lower in the long run with the active approach, while it will be higher with the passive approach. c. The price level would be higher and the level of real GDP would be lower in the long run with the active approach, whereas the price level would be lower and real GDP level would be higher with the passive approach. d. Only the price level would be lower in the long run with the active approach, whereas it would be higher with the passive approach. e. Only the price level would be higher in the long run with the active approach, whereas it would be lower with the passive approach.
Growth in GDP per capita is only possible if growth in _______ exceeds growth in _______.
A. Employment; output B. Output; prices C. Prices; employment D. Output; population