The instructors at College A are regularly late for their office hours. Based on a theory presented in the textbook, we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A

The implicit rental rate for capital includes the

A) total value of a piece of capital equipment. B) interest income forgone by purchasing the piece of capital equipment. C) firm's normal profit. D) amount paid for the use of a piece of capital equipment owned by someone else.

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.