The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. This information could be used to determine
A) the slope of Bobby's demand curve for juice.
B) the amount by which Bobby's demand curve for juice shifts when his income rises.
C) the amount by which Bobby's demand curve for juice shifts when the price of snacks rises.
D) All of the above.
C
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Every society faces some basic economic choices such as
a. what quantities of goods and services to produce. b. which resources to use. c. who gets to have what share of the output. d. All of these.
Consider an individual who earns $95,000, has two children, pays $6,000 in child care expenses for one child, pays $19,000 in college tuition for the other child, pays $6,500 in mortgage interest (mortgage interest is tax deductible), and pays $9,600 in medical expenses. Medical expenses in excess of 7.5 percent of one's income are deductible. Personal exemptions are $3,050 per person (including the tax filer). When the individual's income is $30,000 or above, he/she gets a 12% child care credit. A college credit of 9% of tuition costs is given to those that have income less than $90,000. Her statutory marginal tax rate is 15 percent. What is her actual or effective marginal tax rate?
What will be an ideal response?
Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50, and the price of each input is $9. If the price of each input decreased from $9 to $7, productivity would:
A. remain unchanged and aggregate supply would increase. B. remain unchanged and aggregate supply would decrease. C. increase and aggregate supply would increase. D. decrease and aggregate supply would decrease.
In a foreign exchange market diagram with dollars per peso on the vertical axis, the quantity of __________ would be on the horizontal axis, and the U.S. demand for Mexican goods would help to determine the __________ curve
A) dollars; demand B) dollars; supply C) pesos; demand D) pesos; supply