When housing prices ________ as they did beginning in 2006 following the housing market bubble, most banks and other lenders tightened the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages
A) fell; easier
B) fell; harder
C) rose; easier
D) rose; harder
Answer: B
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Average revenue for a perfectly competitive firm is equal to
a. price times output b. marginal revenue c. total revenue/marginal revenue d. output/total revenue e. zero
In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:
a. consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium. b. to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased. c. to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available. d. to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased. e. the marginal utilities among luxury goods are always equal among certain high-income earners.
Which of the following examples illustrates a progressive income tax?
a. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes. b. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $50 in taxes. c. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $80 in taxes. d. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.
Which of the following is true?
What will be an ideal response?