If full employment GDP is greater than equilibrium GDP there is
A. an inflationary gap.
B. a deflationary gap.
C. both an inflationary gap and a deflationary gap.
D. neither an inflationary gap nor a deflationary gap.
B. a deflationary gap.
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The idea of horizontal equity in taxation implies that
a. equally situated individuals should be taxed equally. b. unequally situated individuals should be taxed unequally. c. benefits should be given first to those individuals who need them most. d. the greatest tax burden should be borne by the wealthiest individuals.
Proponents of requiring the government to balance its budget argue that debt burdens future generations. Explain one claim they make to support this argument
Which of the following restaurant names would most likely signal to a consumer that it has consistent quality?
a. Jakes’s Pizza b. Pizza Hut c. The Little Pizza Place d. Pizza Shack
Which of the following statements is NOT true about the production function?
A) It gives the maximum output that can be obtained for a given level of inputs. B) A new production function does not have to be developed when there is technical progress since technology is included in the function. C) The production function depends upon the level of technology available to the firm. D) It specifies the cost of inputs necessary to produce a certain level of outputs.