One of the costs associated with predictable inflation is:
A. overheads.
B. tax distortions.
C. the re-distribution of purchasing power.
D. budget charges.
Answer: B
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In the above figure, a sales tax of $1 per unit imposed on sellers shifts the
A) demand curve rightward. B) supply curve leftward. C) demand curve leftward. D) supply curve rightward.
If a three-fourths majority of both houses of the U.S. Congress was required for approval of a spending project, economic analysis indicates that
What will be an ideal response?
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. What is the opportunity cost of using the coupon for the Miami trip?
A. $550 B. $450 C. $100 D. $500
Based on the following graph, one point on the consumer's demand curve for X is
The consumer's income is $600.
A. 25 units at a price of $7.50. B. 25 units at a price of $10. C. 60 units at a price of $10. D. 35 units at a price of $10. E. 35 units at a price of $6.