In which of the following examples is excess burden not present?
a. Harriet decides to give up her Saturday hours at her law office after income tax rates rise.
b. Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack.
c. Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed.
d. Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.
b
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Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is $10 and the price of a CD is $20. Which of the following combinations of the two goods maximizes Bobby's utility?
A) 2 pizzas and 4 CDs B) 6 pizzas and 2 CDs C) 4 pizzas and 3 CDs D) 8 pizzas and 1 CDs
When real GDP grows more slowly than potential GDP
What will be an ideal response?
What happens to the piece rate if there is a ratchet effect?
A. It is replaced with a salary contract. B. It increases over time. C. It is only paid to the least productive workers. D. It is replaced with a time rate. E. It decreases over time.
(Consider This) A direct cost of going to college is:
A. tuition, while an indirect cost (opportunity cost) is books and other supplies. B. forgone income while in college, while an indirect cost (opportunity cost) is tuition. C. tuition, while an indirect cost (opportunity cost) is forgone income while in college. D. books and supplies, while an indirect cost (opportunity cost) is food and housing.