From what viewpoint is a sales tax most likely to be considered regressive?
a. If one considers lifetime consumption as equal to income.
b. If one considers that many goods consume by low-income individuals are exempt from taxation.
c. If one considers it as a consumption tax on current income.
d. If one considers it as equal to a tax on wealth.
c
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Suppose the typical household holds $1,000 when the interest rate is 5 percent. When the interest rate rises to 6 percent, the typical household would most likely hold
A) more money because the opportunity cost of holding money is higher. B) less money because the opportunity cost of holding money is lower. C) less money because the opportunity cost of holding money is higher. D) more money because the opportunity cost of holding money is lower.
In the money market, how is the adjustment to equilibrium brought about in the short run and in the long run?
What will be an ideal response?
Jennifer owns a pig farm near Salina, Kansas. Last year she earned $39,000 in total revenue while incurring $38,000 in explicit costs. She could have earned $27,000 as a teacher in Salina. These are all her revenue and costs
Therefore Jennifer earned an A) accounting profit of $1,000 but incurred an economic loss of $26,000. B) accounting profit of $1,000 but incurred an economic loss of $65,000. C) accounting profit of $1,000 but incurred an economic loss of $38,000. D) economic profit of $1,000. E) None of the above answers is correct.
Apple introduced its iPhone 3G in July 2008 and within a month sales had topped 3 million units. By April 2009, more than 25,000 apps for the iPhone 3G were available in the iTunes store, an indication that in a competitive market
A) entry into the market is restricted in the short run, but becomes easier in the long run. B) the ease at which a new firm can enter a competitive market is high. C) entry into the market is blocked. D) the ease at which a new firm can enter a competitive market is low.