Which of the following will shift the consumption function upward?
What will be an ideal response?
an increase in stock prices
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In a perfectly competitive market, firms will exit in the
a. short run if they are suffering economic losses b. short run if they are earning below-normal profit c. short run if price exceeds average total cost d. long run if they are earning above-normal profit e. long run if they are suffering economic losses
The present value of $1 received 2 years from now, given the current interest rate of 8%, is about
A. $.92. B. $.86. C. $.83. D. $1.08.
Figure 17-7
The domestic country is Jamaica.
Refer to . With trade, Jamaica
a.
imports 150 calculators.
b.
imports 250 calculators.
c.
exports 100 calculators.
d.
exports 250 calculators.
If FICA takes the same percentage rate of everyone’s pay, how can it take a higher proportion of the income of lower earners?
a. Lower earners have to pay the full amount, whereas higher earners’ employers pay half. b. The income from which FICA is taken is capped, so higher earners are not taxed on earnings above that amount. c. Lower earners are required to pay FICA during the year, and again as part of income taxes at the end of the year. d. FICA is only taken from hourly wages, so salaried workers, who usually earn higher incomes, do not have to pay it.