Refer to Table 21.3. What are the median income and the mean income for Marklar. Are they the same?
What will be an ideal response?
The median income is the income of the person in the middle of the income distribution, which is Sharon, whose income is $22,000.
The mean income is the average of all income of all seven residents, or [($70,000 + $22,000 + $40,000 + $15,000 + $70,000 + $6,000 + $7,500 ) / 7] = ($230,500 / 7 ) = $32,928.57.
The mean income is almost 50% higher than the median income.
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If the price of a good increases, ________
A) the budget constraint shifts to the right B) the budget constraint shifts to the left C) the consumer surplus increases D) the consumer surplus decreases
In the short run, specific taxes on a firm result in:
a. price increases which may not persist in the long run. b. an increase in consumer surplus because the tax permits spending in additional government services. c. shortages of the good being taxed. d. an increase in producer surplus because of the rise in price.
When the price level in the United States rises,
a. there is an increased demand for credit (or borrowed money) b. producers' demand for new machinery increases, contributing to an increase in aggregate demand c. Americans tend to buy more foreign goods and services d. the French, Canadians, and Japanese find our exports more attractive e. to maintain the value of your real wealth holding, you save less
Everything else the same, if income in Japan rises while income in the U.S. remains unchanged,
a. the supply of dollars in the foreign exchange market will increase. b. the demand for yen in the foreign exchange market will decrease. c. the supply of yen in the foreign exchange market will decrease. d. the demand for dollars in the foreign exchange market will increase. e. the demand for dollars in the foreign exchange market will decrease.