If the price index rises from 200 to 250, the purchasing power value of the dollar:
A. may either rise or fall.
B. will rise by 25 percent.
C. will fall by 25 percent.
D. will fall by 20 percent.
D. will fall by 20 percent.
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Explain how government policies that redistribute income from the rich to the poor might reduce efficiency
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 40 units of labor, what is marginal cost at this level of output?
A. $55 B. $70 C. $60 D. $35 E. $280
The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will move the economy up along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
An income tax system is ________ if marginal tax rates increase as income increases
A) efficient B) progressive C) equitable D) regressive