If Don has budget constraint C in the graph shown, what is the trade-off he faces in terms of the two goods?
This graph shows three different budget constraints: A, B, and C.
A. Two cases of soda for every three gallons of milk
B. One case of soda for every one and a half gallons of milk
C. Three cases of soda for every four and a half gallons of milk
D. All of these accurately reflect Don's tradeoff.
D. All of these accurately reflect Don's tradeoff.
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It is not surprising to see a rather __________ volume of mergers and acquisitions in Japan given its __________-oriented financial system
A) high; banking B) high; markets C) low; banking D) low; markets
If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the:
a. actual burden of this tax falls mostly on consumers. b. actual burden of this tax falls mostly on manufacturers. c. actual burden of the tax would be shared equally by producers and consumers. d. tax would clearly be a progressive tax.
Which of the following is true of expected inflation?
a. It increases the efficiency of the economy. b. It is more of a problem than unexpected inflation. c. It results in lower prices over time as people make adjustments. d. It is not a major problem if people can make the right interest rate and income level adjustments. e. It is necessarily tied to a decline in purchasing power.
A person received 4% nominal interest. The inflation rate was -2% and the tax rate was 25%. This person received an after-tax real interest rate of 5%
a. True b. False Indicate whether the statement is true or false