If the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year, prices have risen ________ since the base year
A) 14.89%
B) 18%
C) 28.8%
D) 188.8%
B
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Which of the following statements is correct?
a. The expected future profitability of a corporation influences the demand for that corporation's stock. b. When a corporation sells stock as a means of raising funds it is engaging in debt finance. c. The owners of bonds sold by the Microsoft Corporation are part owners of that corporation. d. All bonds are, by definition, perpetuities.
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. At an effective price ceiling for pencils,
A. price is above equilibrium. B. quantity demanded is equal to quantity supplied. C. quantity demanded is greater than quantity supplied. D. quantity demanded is less than quantity supplied.
A government is considering levying an alcohol tax to raise revenue to finance health care benefits. People for the tax argue that alcohol demand is price inelastic. Which of the following statements is true?
A. No tax revenue can be raised in this way because alcohol sellers will just lower their price by the amount of the tax, and therefore the consumer price of alcohol will not change. B. This is a very good way to raise revenue both in the short term and in the long term because there are no close substitutes for alcohol. C. The alcohol tax may not raise as much revenue as anticipated in the years to come because alcohol demand is more elastic the longer the period of time consumers have to adjust. D. This tax will not raise much revenue either in the short term or the long term because demand is price inelastic.
The decision by firms of how to produce output is based on
A. the price of inputs. B. techniques of production available. C. the price of output. D. government oversight.