If the price of a good increases, all else equal, consumers perceive
a. an increase in purchasing power if the good is an inferior good.
b. an increase in income if the price increase occurs for a normal good.
c. a decrease in purchasing power.
d. a net gain in purchasing power if they decrease consumption of some goods.
c
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Refer to Figure 10-3. Best friends Laurel and Hardy, both enjoy watching romantic comedies and science fiction movies. Based on the diagrams above what can you conclude about their movie preferences?
A) They have identical movie preferences. B) The diagrams do not provide any information about relative preferences. C) Laurel enjoys science fiction movies more than Hardy. D) Laurel enjoys romantic comedies more than Hardy.
The Medicare payroll tax is also called a _______________ tax, which is a flat percentage of all wages earned.
a. progressive b. regressive c. proportional d. marginal
The effect of a tariff is
A) an increase in consumers' surplus. B) a decrease in producers' surplus. C) an increase in tariff revenues for government. D) b and c E) all of the above
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Kaitlyn and Larissa have formed a dog bathing and grooming business. The number of dogs they can bathe or groom in any given day is depicted in Table 2.1. The opportunity cost of grooming the first dog in a day is bathing ________ dog(s).
A. 1 B. 2 C. 24 D. 25