Real income is found by:
A. dividing nominal income by 70.
B. multiplying nominal income by 1.03.
C. dividing the price index (in hundredths) by nominal income.
D. dividing nominal income by the price index (in hundredths).
D. dividing nominal income by the price index (in hundredths).
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The market demand for a good is determined by horizontally summing the demand curves of individual consumers
Indicate whether the statement is true or false
A tax is regressive if it collects a:
a. larger amount as income rises. b. constant amount as income rises. c. smaller fraction of income as income falls. d. smaller fraction of income as income rises.
Many auction sites, such as eBay, provide a reputation score by which previous customers can rate a seller. Which of the following characteristics of a competitive market is this policy trying to emulate?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers have more complete information.
Historical episodes are
a. valuable to economists because they allow economists to see how the science of economics has evolved. b. valuable to economists because they allow economists to evaluate economic theories. c. not of concern to economists because economics is about predicting the future, not dwelling on the past. d. not of concern to economists because the exact circumstances of historical episodes are unlikely to be observed again.