Use the following information to answer the next question.Maya purchases only three products; orange juice, prepared meals, and on-demand episodes of her favorite shows. Each week she purchases 2 bottles of orange juice, 14 prepared meals, and 8 on-demand episodes. The prices of bottles of orange juice, prepared meals, and on-demand episodes for four different years are shown in the table below.YearPrice of Orange JuicePrice of Prepared MealsPrice of On-Demand Episodes1$2$6$102$6$5$123$4$7$134$4$8$11Based on this information, which of the following statements is true?
A. The cost of Maya's purchases increased in Year 2 and Year 3, but decreased in Year 4.
B. Because the price of one of the goods has gone down each year, the cost of Maya's purchases has gone down each year.
C. Inflation means that all prices have gone up, so there is no inflation in any year.
D. There has been inflation in every year.
Answer: A
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Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. With an efficient Pigouvian tax, how much will your neighbor pay in noise taxes?
A. $22.50 B. $23.75 C. $28.75 D. $71.25
Which of the programs below would transfer wealth from the young to the old?
a. Taxes are raised to provide better education. b. Taxes are raised to improve government infrastructure such as roads and bridges. c. Taxes are raised to provide more generous Social Security benefits. d. None of the above transfer wealth form the young to the old.
Very high debt burdens can result in
A) fine tuning. B) automatic stabilizer. C) the structural deficit. D) tax smoothing. E) debt repudiation.
________: the change in revenue earned by the business as it employees an additional unit of an input, holding other resource use constant
Fill in the blank(s) with correct word