Refer to Exhibit 2-1. If the economy is at point C, it follows that
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more guns and more butter could be produced with available resources than are currently being produced.
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The implicit cost of ownership:
A. is a cognitive bias. B. is an unproven concept. C. is the monetary opportunity cost that is often overlooked. D. All of these are true.
The slope of the budget line is equal to the ratio of:
a. marginal utilities. b. money income to the price of the good on the horizontal axis. c. money income to the price of the good on the vertical axis. d. price of the good on the horizontal axis to the price of the good on the vertical axis.
The following table shows Alex's estimated annual benefits of holding different amounts of money. Average money holdingsTotal benefit$700$50$800$59$900$66$1,000$71$1,100$74How much money will Alex hold if the nominal interest rate is 8 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $900 B. $800 C. $700 D. $1,000
Payroll taxes (Social Security and Medicare) are:
A. progressive, leading to a more equitable distribution of income. B. proportional, because all pay the same rate. C. progressive, like the federal income tax. D. regressive, because the tax applies to only a fixed amount of income.