If the number of highway deaths among young people is roughly proportional to their beer consumption, and young people's elasticity of demand for beer is 1.5, then to decrease highway deaths of young people by 15 percent, taxes would need to be increased enough to increase the price of beer by:
A. 1%.
B. 1.5%.
C. 10%.
D. 15%.
Answer: C
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Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon, because"
A. of its extreme freedom of thought. B. of its emphasis on independent thinking. C. of its steady immigration of new minds. D. of all of the factors listed.
Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm. If the firm pays a wage of $700 per week and the marginal product of labor equals 10 units per week, then the marginal cost of producing an additional unit of output is
a. $7. b. $70. c. $700. d. We do not have enough information to answer this question.
A decrease in supply (prod quota)
What will be an ideal response?
The Budget Act of 1990
A. did not change the top marginal tax rate. B. lowered the top marginal tax rate. C. raised the top marginal tax rate.