Price controls:
A. allow a market to reach equilibrium.
B. prevent a good from being bought or sold.
C. are regulations that sets a maximum or minimum legal price for a particular good.
D. All of these are true.
Answer: C
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Refer to Table 18-9. Calculate the income tax paid by Sylvia, a single taxpayer with an income of $70,000
A) $21,000 B) $15,740 C) $15,400 D) $13,475
We collapse the consumer's current-period and future-period budget constraints into a single lifetime budget constraint by
A) assuming no default. B) substituting for savings. C) eliminating consumption smoothing. D) assuming the consumer knows the future.
The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. Bobby views snacks as a(n)
A) normal good. B) inferior good. C) Giffen good. D) Not enough information.
Which of the following is true concerning trade?
A. It reduces consumption possibilities. B. All groups benefit from free trade. C. It shifts the production possibilities curve to the right. D. It redistributes income away from import-competing industries.