When government spending and tax revenue are equal, G = T, the economy
a. must be in equilibrium
b. has achieved full employment without inflation
c. has a budget deficit
d. has a budget surplus
e. has a balanced budget
E
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A welfare payment that is reduced when the recipient earns more income is a(n):
A. unconditional benefit. B. fair benefit. C. inducement for the poor to find employment. D. means-tested benefit.
________ is a calculation that adds up costs and benefits using a common unit of measurement, like dollar values
A) Expenditure-income analysis B) Budget constraint analysis C) Revenue-income analysis D) Cost-benefit analysis
Opportunity cost can best be defined as
A) the interest cost of financing a business loan at the bank. B) the value of all of the alternatives sacrificed. C) the value of the next-highest-ranked alternative. D) There is no real definition for opportunity cost.
The economy's potential output is
a. the maximum output that could be achieved temporarily during a time of economic boom. b. the minimum output that could be achieved during a recession. c. present when 100 percent of the labor force is employed. d. the maximum sustainable output of the economy given its resources.