Suppose That in 2012 the Average Citizen's Federal Tax Bill

question 122

Multiple Choice

Suppose that in 2012 the average citizen's federal tax bill is $4,872,and total federal spending is $6,532 per person.In 2012,the federal government will have

• A)a budget surplus.
• B)a budget deficit.
• C)horizontal equity.
• D)vertical equity.

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, essentially a measure of producer benefit.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that suppliers are willing to produce.

Actual Price

The price at which goods or services are sold in the market, as opposed to theoretical or listed prices.