Macroeconomics is converging with microeconomics because
A) macroeconomic relationships depend on microeconomic behavior.
B) macroeconomics studies total output.
C) government deficits and unemployment go together.
D) inflation means a general increase in prices.
E) microeconomic theories are easily testable whereas macroeconomic theories are difficult to test.
Answer: A) macroeconomic relationships depend on microeconomic behavior.
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When efficiency is attained, the consumer surplus
A) must be larger than the producer surplus. B) must be smaller than the producer surplus. C) must equal the producer surplus. D) can be either smaller than or larger than but cannot equal the producer surplus. E) can be smaller than, equal to, or larger than the producer surplus.
The ability-to-pay principle states that _____
a. individuals should pay taxes in proportion to their ability to pay b. individuals should not move to localities where they cannot pay the taxes c. individuals should not use government programs unless they contribute something in taxation d. individuals should pay taxes only if they benefit