The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be:
A. less than $75,000.
B. less than $400,000.
C. approximately $668,850.
D. approximately $926,000.
Answer: D
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Suppose the demand curve for committing robbery can be represented by a downward sloping demand curve. In other words, as the price of committing a robbery falls, more robberies will be committed
Now, suppose laws are passed allowing people to carry guns unconcealed in public. Which of the following best explains the likely outcome? A) Demand for robberies will fall. B) Supply of robberies will increase. C) The elasticity of robberies will be perfectly inelastic. D) The quantity demanded of robberies will decrease because the price of robberies has risen.
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in producer surplus is
A) 25. B) 5. C) 12.5. D) 20.
Besides rewarding discoveries, patents can also prevent them
Indicate whether the statement is true or false
Which of the following is an example of an explicit income transfer?
A. A Social Security pension paid to a retired factory worker. B. The paycheck received by a person who missed work last week because of vacation. C. The check received by a person currently employed by the postal service. D. A payment to a member of the U.S. Army who has recently been transferred to Germany.