Hailey increases her consumption of Good X after the price of Good Y decreased. For Hailey
A. Good X is an inferior good.
B. Good X and Good Y are complements.
C. Good Y is an inferior good.
D. Good X and Good Y are substitutes.
Answer: B
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All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA) except
A) investors earning more than $200,000 pay a new tax on their investment income. B) workers earning more than $200,000 pay higher Medicare payroll taxes. C) beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. D) pharmaceutical firms and health insurance firms pay new taxes.
In 1950, Social Security benefits increased by over 50 percent
a. True b. False
John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would
a. Prefer buying in the US b. Prefer buying in Mexico c. Be indifferent about where he buys his television d. None of the above
Suppose that at an output of 1,000 units, a monopolist has marginal cost of $40, marginal revenue of $30, average variable cost of $30, and average total cost of $50 . In order to maximize profit or minimize loss in the short run, the firm should
a. shut down b. continue to produce 1,000 units c. produce fewer than 1,000 units but still operate d. produce more than 1,000 units e. increase its plant size to gain economies of scale