Suppose that the price of beer goes up due to a higher alcohol tax added. Quantity demanded for beer will ________ and consumer surplus will ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: D
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Curly pays $12,000 in taxes and earns $150,000. Moe pays $7,000 in taxes. If the tax system is proportional, then Moe's income is:
A. $125,000. B. $98,000. C. $87,500. D. $56,000.
Opportunity cost is best defined as
A). the opportunity to earn a profit that is greater than the one currently being made. B). the amount that is given up when choosing an activity that is not as good as the next best alternative. C). the amount given up when choosing one activity over all other alternatives. D). the amount given up when choosing one activity over the next best alternative.
In 2007 a company sold 35,000 drones at $150 each. In 2008 the same company sold 40,000 drones at $170 each. This information suggests that
A. The price of drones increased because the costs of production increased from 2007 to 2008. B. From 2007 to 2008, the demand curve for drones was upward-sloping because of improved technology. C. The supply of drones increased from 2007 to 2008. D. The demand for drones increased from 2007 to 2008.
A union of all workers from a particular industry is a(n)
A) craft union. B) conglomerate union. C) industrial union. D) expansive union.