A certain state legislature is considering an increase in the state gasoline tax. Representative Campbell argues that an increase in the gasoline tax would harm low-income drivers disproportionately. Representative Richards responds by saying that low-income drivers own smaller cars that use less gasoline, and that low-income drivers therefore would not be harmed disproportionately
a. Representative Campbell's argument is based primarily on efficiency, while Representative Richards' argument is based primarily on equality.
b. Representative Campbell's argument is based primarily on equality, while Representative Richards' argument is based primarily on efficiency.
c. Both representatives' arguments are based primarily on efficiency.
d. Both representatives' arguments are based primarily on equality.
d
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Wasted capital and labor resources are a problem associated with a(n) ________ gap. Increased inflation is a problem associated with a(n) ________ gap.
A. recessionary; recessionary B. expansionary; expansionary C. recessionary; expansionary D. expansionary; recessionary
Most consumers in stores use marginal analysis to make their buying decisions.
Answer the following statement true (T) or false (F)
In the short-run if there is a surplus in the market for a product, the rationing function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the supply of the product. C) an increase in the market price of the product. D) a decrease in the market price of the product.
_____ is measured in terms of current-year prices
a. Nominal gross domestic product (GDP) b. GDP price index c. Real gross domestic product (GDP) d. Arbitrage e. Depreciation