Say an individual demand curve was given by P = 50 - 5Q. When the price is $25, consumer surplus is around
A. $125.
B. $100.
C. $63.
D. $188.
Answer: C
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If a household has a husband, wife, and two kids, has a standard deduction of $12,600, has itemized deductions of $13,850, and personal exemptions of $16,000 (4*$4,000), then the first ________ of income is federal income tax free.
A. $29,850 B. $41,450 C. $37,100 D. $28,600
You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you will receive ________ at the end of the year, but that money has a purchasing power of ________
A) $5,050; $5,025 B) $5,100; $5,050 C) $6,000; $5,500 D) $5,500; $5,250
Which of the following would likely cause aggregate demand to shift to the left?
A. Higher interest rates discouraging borrowing B. Higher tariffs on all imports into the United States C. Greater consumer confidence about the future D. All of these would likely cause aggregate demand to shift to the left.
Firms would increase output as a reaction to
A. increases in costs of resources. B. unplanned inventory increases. C. decreased demand for output. D. unplanned inventory reductions.