Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would
a. decrease.
b. increase.
c. be unaffected.
d. There is insufficient information given to answer the question.
a
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What was the primary reason the Income Tax Amendment of 1913 was passed?
(a) To pay off the public debt accumulated during the Civil War (1861–65) (b) To pay off the public debt accumulated during World War II (1941–45) (c) To grant the federal government access to revenues beyond those from land sales, customs and excise taxes (d) To pay off the current account deficit
Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (?) than economy B. Given this information, we know with certainty that
A) steady state consumption in A is higher than in B. B) steady state consumption in A is lower than in B. C) steady state consumption in A and in B are equal. D) steady state growth of output per worker is higher in A than in B. E) none of the above
A firm produces a good and generates $6 million in receipts. Wages are $1 million, rent is $500,000, and interest payments are $1 million. Then
A. profits are $3.5 million, the cost of production is $6 million, and households receive income equal to $6 million. B. profits are $500,000, the cost of production is $5 million, and households receive income equal to $4.5 million. C. profits are $1.5 million, the cost of production is $6 million, and households receive income equal to $2.5 million. D. profits are $500,000, the cost of production is $2.5 million, and households receive income equal to $4.5 million.
Which of the following is the best example of a short-run adjustment?
A) A local bakery purchases another commercial oven as part of its capacity expansion. B) Your local Walmart hires two more associates. C) Smith University completed negotiations to acquire a large piece of land to build its new library. D) Toyota builds a new assembly plant in Texas.