A government policy to improve farm incomes by supporting agricultural prices at a level above equilibrium will reduce consumer's surplus

The above figure depicts an economy with a short-run equilibrium

A) at full employment. B) below full employment. C) at higher than full employment. D) at zero unemployment

Some cities finance their airports with a departure tax: every person leaving the city by plane is charged a small fixed dollar amount that is used to help pay for building and running the airport. The departure tax follows the:

a. benefits-received principle. b. ability-to-pay principle. c. flat-rate taxation principle. d. public-choice principle.