If city officials expect that an increase in bus fares will raise mass transit revenues, they must think that the demand for bus travel is
a. elastic
b. unit elastic
c. inelastic
d. perfectly inelastic
e. -10
C
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Social Security benefits are determined by a complex formula that is rarely discussed publicly but the information is available on the Social Security Administration's website
A recipient's lifetime earnings is indexed and averaged over the highest 35 years of earnings to obtain an Average Monthly Indexed Earnings amount (AIME). If Social Security benefits begin at age 65 to 67, the monthly benefit in 2007 is 90% of the first $680 of AIME, 32% of AIME above $680 and less than $4100, and only 15% of AIME in excess of $4100 . For example, an individual whose indexed earnings were at the poverty level of $10,200/year would receive 78.4% of that in benefits, while an average earner of $37,000/year would receive only 44.8% of that in benefits, and individual's with above average earnings receive an even lower proportion in benefits. Using this information how could one argue that the payroll tax is not regressive?
The four major components of aggregate demand are consumption, investment, government purchases of goods and services, and net exports
a. True b. False Indicate whether the statement is true or false
Externalities are a type of market failure because:
A.) Buyers do not have complete information about the product. B.) Producers have too much power. C.) Third parties bears the costs or benefits of a market activity. D.) Goods and services are not distributed fairly.
Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $10 to $12. As a result of the wage increase, firms will hire:
A. fewer workers and the total paid out for wages will decline.
B. fewer workers, but the total paid out for wages will increase.
C. fewer workers, but the total paid out for wages will remain unchanged.
D. more capital, if capital and labor are used in fixed proportions in production.