Refer to the graph. Which of the lines in the diagram represent(s) a proportional tax?





A.  Both A and B.

B.  D only.

C.  C only.

D.  B only.


C.  C only.

Economics

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Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 400 and WR = 100 and the probability of drought is 0.75. What is Brandon's expected utility?

A. 10 B. 17.5 C. 20 D. 30

Economics

The government can borrow money from both the bond market and the loanable funds market

a. True b. False Indicate whether the statement is true or false

Economics

The macroeconomy is said to be in long-run equilibrium only if

a. the resource, loanable funds, foreign exchange, and goods and services markets are all in equilibrium. b. prices were incorrectly estimated by decision makers. c. the output of the economy exceeds the full-employment level of output. d. the economy is operating along its short-run aggregate supply curve.

Economics

Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit of output is $30, how much profit does this firm earn at its profit-maximizing level of output?

A. $800 B. $1,600 C. $1,200 D. $500

Economics