Official data may overstate the extent of poverty because
A. poverty is a relative concept as opposed to an absolute concept.
B. it does not add “in-kind” transfers to the incomes of the poor.
C. it overstates the taxes paid by the poor.
D. it overestimates the amount the poor earn in the “underground economy.”
Answer: B
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The short-run Phillips curve shows
A) a tradeoff between the unemployment rate and the inflation rate. B) a tradeoff between real GDP and unemployment. C) the expected inflation rate. D) the natural unemployment rate. E) potential GDP.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is:
A. $100. B. $300. C. $200. D. $400.
In the current account, a deficit in the trade balance is necessarily offset by a surplus in the service balance.
Answer the following statement true (T) or false (F)
If a firm offers a senior citizen discount,
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.