Potential output is:
A. equal to actual output.
B. the same as the natural rate of unemployment.
C. also known as the output gap.
D. the maximum sustainable amount of output.
Answer: D
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The more time gasoline consumers have to adjust to a price change,
A) the lower their price elasticity of demand. B) the greater their price elasticity of demand. C) the less sensitive they will be to the price change. D) the less time they will have to seek out substitutes for gasoline.
Which of the following are not counted when we compare a family's income to the poverty line?
a. In-kind transfers such as food stamps, Medicaid, and public housing. b. Cash welfare payments such as from social security. c. Cash payments when a worker becomes unemployed. d. Both a. and b. above are correct.
A good or service that is rival but nonexcludable is called a ________, and a good or service that is nonrival but excludable is called a ________.
A. public good; collective good B. commons good; public good C. commons good; collective good D. public good; private good
Arnold Harberger's study on the incidence of the corporate income tax concluded that the burden of the tax is borne
A. by consumers in the form of higher prices and by workers in the form of lower wages. B. by corporations in the form of lower profits and by consumers in the form of higher prices. C. by owners of corporations, proprietorships, and partnerships in rough proportion to profits. D. only by noncorporate firms in the form of higher capital prices.