The country of Erbia has been experiencing high unemployment over a period of seven years. A likely outcome of such a situation is that potential GDP will fall

The "ability-to-pay" principle of taxation is the normative idea that

A) an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals. B) two individuals earning the same income should have equal ability to pay, all else constant. C) each individual should voluntarily contribute according to her ability to pay taxes. D) progressive taxes are more equitable than regressive taxes.

Which would be characteristic of monopolistic competition?

A. Relatively small market share for each firm. B. Product standardization. C. A potential for price-fixing through collusion. D. Mutual interdependence among the few firms.