Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Harold must enjoy ironing more than Sarah does.
b. Harold must be better at ironing than Sarah is.
c. The opportunity cost of ironing is greater for Harold.
d. Sarah has a higher opportunity cost of laundering her clothes than Harold does.
c. The opportunity cost of ironing is greater for Harold.
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Dynamic tax analysis is based on the recognition that as tax rates are increased
A) tax revenue collections will eventually decline. B) tax revenue collections will continually increase. C) tax revenue collections will change at the same rate as the tax rates. D) tax revenue collections will increase at a faster rate than the tax rate change.
In the above figure, when disposable income is greater than 600
A) saving is negative. B) the MPC is greater than 1. C) saving is positive. D) the MPS is negative.
The branch of economics that examines the impact of choices on aggregates in the economy is:
A) positive economics. B) normative economics. C) macroeconomics. D) microeconomics.