Suppose that one could determine the amount of income that is pure economic rent. If a law were passed that taxed 50 percent of that rent, what would happen to the amount of work that people perform?
A. It would increase as people seek higher income.
B. It would be unchanged.
C. It would decrease as people suffer a loss of income.
D. It would increase for some and decrease for others.
Answer: B
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Why is the equilibrium price the best deal available for both buyers and sellers?
What will be an ideal response?
Larry Krovitz is a salesman who works at a used-car showroom in Sydney, Australia. It's the last week of July but he is yet to meet his sales target for the month. A customer, Harold Kumar, who wants to buy a Ford Fiesta, walks in to the showroom
After taking one of the cars for a test drive, Harold decides to buy it. While $11,000 was the least that Larry would have been willing to accept for that car, he quotes a price of $15,000 . After some bargaining, the car is sold for $12,000 . a. What is the producer surplus in this case? b. If Larry bought the car for $8,000, what is his profit? c. Is producer surplus always equal to profit? Explain your answer.
The amount of government spending on education per public school student has ________ since 1960, and the achievement level of students has generally ________ since that time
A) increased; increased B) decreased; decreased C) increased; decreased D) decreased; increased
Which of the following equations correctly describes the U.S. balance of payments in 2017?
a. current account balance – financial account balance + statistical discrepancy = net balance
b. current account balance + financial account balance – statistical discrepancy = net balance
c. current account balance + financial account balance + statistical discrepancy = net balance
d. current account balance – financial account balance - statistical discrepancy = net balance