The “vicious cycle of discrimination” refers to
If net taxes decrease by $500 billion, both household disposable income and
consumption spending will increase by $500 billion.
Economics is the study of choice under conditions of
The limits of the terms of trade between two countries are determined by those
countries’ opportunity costs of production.
Figure 5-11 shows five different levels of income for a particular state (in billions of
dollars) and the quantity of public higher education demanded there (for a given level
of tuition). Given this information, what can be said about the state’s demand for public
higher education?
If a 5 percent increase in income leads to a 15 percent increase in the quantity
demanded of a service, then the income elasticity of demand for that service equals
0.33.
A pizza shop owner needs to buy a new pizza oven and he is trying to decide between
two different used ones. Whichever oven he buys, it will generate $3,000 net revenue
per year. The older use oven has a useful life of only 2 years and the newer oven has a
useful life of 4 years. If the interest rate is 8% per year, what is the difference in value
between the two ovens? (Assume that each year’s revenue is received at the end of the
year.)
Because the market demand curve slopes downward
Advocates of comparable worth favor eliminating all differences in wage rates among
employees of the same firm.
If a firm is experiencing diminishing marginal returns to labor, then