If the tax revenue of the federal government exceeds spending, then the government necessarily
A. runs a budget deficit.
B. runs a budget surplus.
C. runs a national debt.
D. will increase taxes.
Ans: B. runs a budget surplus.
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The purpose of an effluent fee imposed on a firm is
A) to increase output of its product by increasing the resources allocated to production. B) to increase output of its product by reducing the resources allocated to production. C) to reduce output by increasing production costs thereby reducing resources used. D) none of the above
Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included:
a. increased personal and corporate tax rates. b. price and wage controls. c. reduced purchases of government debt by the Federal Reserve. d. discontinuance of the practice of "pegging" interest rates. e. All of the above.
The logistical costs associated with implementing a tax are called the:
A. deadweight loss. B. administrative burden. C. total surplus. D. tax revenue.
A microeconomist would study all of the following issues EXCEPT
A. the impact of a snowstorm on the sales of snow shovels. B. the impact of a change in consumer income on the sales of corn. C. the effect of a change in income taxes on the nation's rate of unemployment. D. the most efficient means for General Motors to produce an automobile.