Refer to the scenario above. After the implementation of the tax, Thomas's expenditure on wine will:
A) remain the same.
B) increase by $50.
C) decrease by $50.
D) increase by $100.
A
You might also like to view...
Which of the following is NOT an example of firms trying to prevent resale?
A) Movie theatres check student ID for students' discounted tickets. B) An aluminum company starts its own wire production firm to sell to the aircraft parts at a higher price. C) Government limits the sale of international edition textbooks in the U.S. market. D) Milk producers sell the milk to processed dairy products producers at a lower price.
Why might a union find that attaining the goal of employing all its members and the goal of maximizing total union wage receipts to be incompatible objectives?
What will be an ideal response?
Maggie is a potter who likes to dig her own clay for producing pots, cups and other ceramic items. She is aware of two places where she can obtain the right clay for her work. The first field is quite close, just at the edge of town. The second field is
15 miles away and (since there are no access roads) requires a half-day of travel just to get there. Compare the opportunity cost of producing pots using clay from each of these fields.
If people have rational expectations, then they
a. are correct at least 50% of the time. b. do not make systematic and correctable errors in prediction. c. sometimes overestimate, but never underestimate, economic variables. d. revise their expectations upward when their predictions are too low and downward when they are too high.