Explain what the poverty line is and its purpose
What will be an ideal response?
The poverty line is the officially established income level that distinguishes the poor from the non-poor. It is set at three times the cost of the Department of Agriculture's minimum food budget.
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The new classical approach to the aggregate supply curve assumes that businesses are
A) better informed about the general price level than they are about prices in their own markets. B) better informed about prices in their own markets than they are about the general price level. C) equally well informed about prices in their own markets and the general price level. D) reluctant to engage in investment spending because of a lack of information concerning future prices.
An airline knows that business travelers have more inelastic demand for travel than vacationers. That is, business travelers are often willing to pay more for airline tickets than vacationers. The airline also knows that business travelers do not like to travel over weekends. When customers request airline tickets that do not involve travel over a weekend, the airline determines that a traveler
is likely a business traveler and charges a higher price. This is an example of a. moral hazard. b. signaling. c. screening. d. adverse selection.
About how much of the tax is paid by cigarette sellers?
A. 2 cents
B. 8 cents
C. 10 cents
D. 18 cents
"Higher prices always yield higher revenues." Do you agree or disagree? Why?
What will be an ideal response?