Curly pays $12,000 in taxes and earns $150,000. Moe pays $7,000 in taxes. If the tax system is proportional, then Moe's income is:
A. $125,000.
B. $98,000.
C. $87,500.
D. $56,000.
Answer: C
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According to the law of demand,
A) everything has its price. B) human wants are insatiable. C) people will do anything to obtain goods they want. D) there are no free goods. E) there is a negative relationship between the amount of anything people will purchase and the sacrifice that must make to obtain it.
The quantity theory of money asserts that:
a. changes in nominal GDP are inversely related to changes in the velocity of money. b. changes in money supply are positively related to changes in the velocity of money. c. changes in the money supply are unrelated to changes in the price level. d. changes in the output level are unrelated to changes in the price level. e. changes in the money supply are directly related to changes in nominal GDP.
If the quantity demanded of milk is 55,000 gallons and the quantity supplied of milk is 80,000 gallons, then
a. there is an excess supply of 25,000 gallons of milk b. the price of milk will rise to clear the market c. consumers get the milk they demand so equilibrium exists d. there is an excess demand of 25,000 gallons of milk e. the supply curve is greater than the demand curve
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the monetarists, ________ can be caused when AD1 shifts to the left.
A. inflation B. an increase in money demand C. a recession D. stagflation