Which of the following is a point made by economist Richard Easterlin (for whom the Easterlin Paradox is named) based on his research?
A) Rich people tend to be happier than poor people in the same country.
B) People in richer countries tend to be no happier than people in poorer countries.
C) People in richer countries tend to be much happier than people in poorer countries.
D) People in poorer countries tend to be much happier than people in richer countries.
E) a and b
E
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Which of the following is subject to double taxation?
A) income earned by people in the lowest tax bracket B) Social Security income C) dividends and retained earnings D) income earned by government employees
Alfonse is a farmer who grows 20,000 bushels of corn each year. Last year, the market price was $3 per bushel. If Alfonse earned $80,000 . the government's target price per bushel must have been
a. $60,000 b. $20,000 c. $4,000 d. $4 e. $1
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Has Tom made the best decision?
A. No, because he's earning an economic profit of -$6,000. B. Yes, because he's earning an accounting profit of $35,000. C. No, because his accounting profit is larger than his economic profit. D. Yes, because his accounting profit is larger than his economic profit.
According to Figure 9.1, saving equals zero at an income level of
A. $2,000 billion. B. $0. C. $1,000 billion. D. $500 billion.