_____ shows the nominal exchange rate at which a given basket of goods and services in a country would cost the same as in another country
a. Consumer price index
b. Purchasing Power Parity
c. Wholesale price index
d. Real balance effect
b
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When income is $15,000, the amount of income income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The marginal tax rate in this case is
A) 20 percent. B) 13.3 percent. C) 15 percent. D) 25 percent.
From an economic perspective, studies of the costs of trade barriers show that they:
A. Are outweighed by the reduction in foreign competition provided by the barriers B. Are much less than benefits for domestic producers and workers C. Are about equal to the benefits from trade barriers D. Far exceed their benefits for society
It is estimated that, on the average and taking account of skill differentials, union wages are
A) 100 percent higher than nonunion wages. B) less than nonunion wages. C) 10-25 percent higher than nonunion wages. D) 66 percent higher than nonunion wages. E) equal to nonunion wages.
Consumers will willingly make less-informed decisions: a. if information costs are less than the perceived benefits of gathering information. b. if information costs are greater than the perceived benefits of gathering information. c. since ignorance always leads to bliss
d. whenever acquiring more information requires sacrifice.