Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006 . The consumer price index was 177 in 2001 and 221.25 in 2006 . Ruben's 2001 salary in 2006 dollars is
a. $75,000; thus, Ruben's purchasing power increased between 2001 and 2006.
b. $75,000; thus, Ruben's purchasing power decreased between 2001 and 2006.
c. $85,000; thus, Ruben's purchasing power increased between 2001 and 2006.
d. $85,000; thus, Ruben's purchasing power decreased between 2001 and 2006.
a
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Suppose when the price of novels goes from $15 to $20 per book, production increases from 760 million books to 840 million books per year. Using the mid-point method, the price elasticity of supply is
A. 0.77 B. 28.5 percent C. 37 percent D. 0.35
A nonrival good is a good that a. is produced by a monopoly
b. is produced by a cartel. c. can provide benefits to additional users at a zero marginal cost. d. is sold in a single market.
A lump-sum tax:
A. takes the same percentage of taxes from income from all taxpayers. B. requires those with low incomes to pay a smaller percentage of their income than high-income people. C. is levied so that low-income taxpayers pay a greater proportion of their income toward taxes than high-income taxpayers. D. taxes everyone the same amount, regardless of their income.
The optimum quantity of an input occurs when
a. diminishing returns set in. b. marginal revenue product equals input price. c. marginal physical product equals input price. d. marginal revenue product equals output price.