Numerous studies have shown that breathing second-hand cigarette smoke is harmful to your health. This suggests that a tax on cigarettes will:
A. have no effect on total economic surplus.
B. increase total economic surplus.
C. lead to a decrease in the price of cigarettes.
D. decrease total economic surplus.
Answer: B
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The figure above shows the U.S. supply of labor curve. An increase in the income tax rate leads to a
A) movement downward along the supply of labor curve from a point such as A to a point such as B. B) leftward shift of the supply of labor curve. C) rightward shift of the supply of labor curve. D) movement upward along the supply of labor curve from a point such as C to a point such as B. E) None of the above answers is correct because there is no change in the supply of labor curve.
The group with the highest incidence of poverty in 2010 was
a. women living in a household with no husband present. b. blacks. c. Hispanics. d. people under age 18.
Your grandfather tells you that he earned $.50 per hour at his job when he was a boy in 1929
a. Given that the CPI was 17.1 in 1929 and 184.0 in 2003, how much would you have to make in 2003 to have the same real hourly wage? b. You made $5.50 an hour working during 2003 . Were you better off than your grandfather in terms of purchasing power? Explain. c. Your grandfather also tells you that a soda cost $.05 in 1929, and you know a soda cost $.55 in 2003 . You decide to use the price of a soda as the price index. How much would the 2003 "soda equivalent" of $.50 per hour in 1929 be?
For low wages, the leisure demand curve slopes ______; for higher wages it slopes ______.
A. upward; downward B. downward; upward C. downward; downward D. upward; upward