In 1931, a politician was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 195 for 2005. The politician’s 1931 salary was equivalent to a 2005 salary of about
a) $962,171
b) 1,125,008
c)1,154,262
d)1,455,995
Ans: a) $962,171
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Which of the following is true for a firm with a downward-sloping demand curve for its product?
A) Price equals average revenue but is greater than marginal revenue. B) Price equals average revenue but is less than marginal revenue. C) Price, average revenue, and marginal revenue are all different. D) Price, average revenue, and marginal revenue are all equal.
A line item budget _____
a. groups expenditures by congressional district b. groups expenditures by the goals they are trying to achieve c. groups expenditures by the types of items that are purchased d. groups expenditures by special interest
At the profit-maximizing level of output,
a. marginal revenue equals average total cost. b. marginal revenue equals average variable cost. c. marginal revenue equals marginal cost. d. average revenue equals average total cost.
Fiscal policy refers to the:
A. fact that equal increases in government spending and taxation will be contractionary. B. manipulation of government spending and taxes to stabilize domestic output, employment, and the price level. C. manipulation of government spending and taxes to achieve greater equality in the distribution of income. D. altering of the interest rate to change aggregate demand.