A political problem with discretionary fiscal policy is the
A. political business cycle.
B. Federal Reserve.
C. split control of the legislative and judicial branches of government.
D. business cycle.
Answer: A
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Results of research conducted regarding the Moving to Opportunity program found all of the following except
A) boys and girls who moved to low-poverty neighborhoods were less likely to be arrested. B) boys who moved to low-poverty neighborhoods displayed less cruel or mean behavior. C) girls who moved to low-poverty neighborhoods had fewer behavioral difficulties. D) boys and girls who moved to low-poverty neighborhoods were less likely to be victims of crimes.
If a consumer always buys goods rationally, then
A) the marginal utility per dollar spent on all goods will be equal. B) the marginal utility of the different goods consumed will be equal. C) the average utilities of the different goods consumed will be equal. D) the total utilities of the different goods consumed will be equal.
What is "adverse selection"?
What will be an ideal response?
Tax Fighters, Inc., develops, markets, and sells software for tax preparation. Tax Fighters, Inc. sells IRS Tax Fighter, a software for completing federal income tax forms and Gopher Basher, a software for completing Minnesota state income tax forms. For simplicity, assume that all of the costs in this industry are the fixed costs of developing the software packages themselves. The marginal cost of producing another disk is approximately zero.Consider the following information about the demand for tax software. There are an equal number of consumers in each group. Figure 7.1 shows the maximum that each type of consumer is willing to pay for each product. As vice president for pricing, explain your optimal bundling and pricing strategy to maximize Tax Fighter profits from the sale of tax
software. Be sure to clearly explain why your strategy is optimal.
What will be an ideal response?