If in the market for used bikes where only sellers can distinguish between good quality and bad quality used bikes, then in that market there exists:
A. perfect information.
B. asymmetric information.
C. public information.
D. duopoly information.
Answer: B
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The marginal income tax rate is the ________
A) total tax paid by an individual divided by the total income earned B) difference between the highest and lowest income tax rates charged by a state C) percentage of the last dollar earned that a household pays in taxes D) total revenue received by the government divided by the number of taxpayers
In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve
What will be an ideal response?
Which of the following is considered a microeconomic issue?
A. Chinese economic growth has declined. B. The Federal Reserve cuts key interest rates in order to stimulate lending. C. Walmart decides to add more self-checkout machines as the cost of labor rises. D. India experiences a reduction in unemployment after opening its borders to trade.
A budget line describes:
a. the alternative combinations of two goods that a buyer can purchase with a given money income b. the alternative combinations of two goods that will yield the same level of total satisfaction to a consumer c. the quantities of a particular good that a consumer will purchase at various prices