Suppose Billy owns a hair salon in Dallas. He has one large hair dryer for which he paid $1,000. If he can sell the dryer one year later for $800, his total economic depreciation equals
A) $1,000.
B) $200.
C) $800.
D) $1,800.
E) None of the above answers is correct.
B
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Lump-sum taxes reduce the total amount of revenue that can be raised because:
A. people perceive them to be unfair. B. they have large administrative burdens. C. the size of the tax is limited by the poorest citizens' ability to pay. D. they are often applied inefficiently.
What does it mean if the purchasing power in 1950 was 4.15 relative to the 1982 base year?
a. It took $4.15 in 1950 to buy what $1 bought in 1982. b. The average price level in 1982 was five times as high as in 1950. c. $4.15 in 1950 had the same nominal money value as $1 in 1982. d. It took $4.15 in 1982 to buy what $1 bought in 1950. e. Nominal prices have increased by more than 400 percent between 1950 and 1982, but the real value of money has not changed.
Most collective bargaining situations lead to strikes.
Answer the following statement true (T) or false (F)
In well-working markets, cost economies from standardization are reflected in the level of product variety.
Answer the following statement true (T) or false (F)