Suppose that an ad valorem tax of 10% is imposed on consumers of butter. The bread market supply is Qs = 10 + P and the bread market demand is Qd = 220-P. What is the consumers' tax burden?
A) Consumers' tax burden is $3.
B) Consumers' tax burden is $10
C) Consumers' tax burden is $5.
D) Consumers' tax burden is $2.
C
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If the federal government increases the amount of Social Security benefits for retired persons, then the
A. consumption schedule will shift upward. B. aggregate demand curve will shift outward. C. effect on equilibrium GDP will be the same as a cut in taxes. D. All of the above are correct.
Investment banks specialize in information regarding
A) commodities. B) certificates of deposit. C) demand deposits. D) primary securities.
For a firm in monopolistic? competition, selling costs
A) increase costs and reduce profits.
B) always increase demand.
C) can change the quantity produced and lower the average total cost.
D) can lower total cost.
E) have no effect on the quantity sold.
Andy is offered the following two income scenarios: (1) earn $10,000 the first year, $12,000 the second year, and $15,000 the third year or (2) earn $15,000 the first year, $12,000 the second year, and $10,000 the third year. Which is the rational option?
A. Option 1 B. Option 2 C. Neither even though option 2 is better than option 1. D. Neither; the options are the same.