If all of the following examples are elastic, which one will most likely have a decrease of revenue?
a. The price of radios rises.
b. The price of sports drinks falls.
c. The price of picture frames remains constant.
d. The quantity supplied of eye liner remains constant.
a. The price of radios rises.
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You have just read that Australia has suffered a drought, destroying its wheat crop for this year. The effect of this adverse supply shock on Australia would probably be
A) an increase in prices and an increase in real interest rates. B) an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates. C) a decrease in prices and a decrease in real interest rates. D) a decrease in prices, a decrease in nominal interest rates, but an increase in real interest rates.
Suppose George's income is $10,000 and he pays a tax of $1,000 . but Laura's income is $50,000 and she pays a tax of $4,000 . Such a tax is:
a. regressive. b. progressive. c. proportional. d. flat.
Refer to the information provided in Table 23.8 below to answer the question(s) that follow. Table 23.8
Refer to Table 23.8. Planned investment equals actual investment at
A. all income levels. B. all income levels below $6,000 million C. all income levels above $6,000 million. D. an income level of $6,000 million.
According to the Pew Charitable Trust methodology for identifying the middle class, if people near the boundary between the lowest and the lower middle income class lose income, the middle class will ________
A. increase, and that is unambiguously a good thing. B. shrink, but that is unambiguously a good thing. C. shrink, and that is unambiguously a bad thing. D. increase, and that is unambiguously a bad thing.