Economics Chapter 3 4 5
Chapter 3,4,4
Monte Reynolds
What effect do each of the following have on the demand for small automobiles such as the mini cooper and smart car?
A Demand increases
B Demand increases
C Demand decreases
D Demand decreases
E Demand Increases
Question 6
What effect will each of the following have on the supply of auto tires?
A Advances in technology should increase the supply
B A decline in the number of firms in the tire industry will decrease supply
C Increase in the price of rubber will make supplies high due to passing the price on to the consumer
D Supplies will be less
E Supply is more since more people are buying more tires for big trucks
F Supply of tires will be more
G Supply of tires will be less
Chapter 4
3. What are the major determinants of price elasticity of demand?
A Bottled Water-Elastic
B Toothpaste-inelastic
C Crest-Elastic
D Ketchup-Inelastic
E Diamond Bracelet-Elastic
F Microsoft Windows-inelastic
Problem 4.
Danny Dimes Donahue, at $1.50 each price is elastic, at $1.00 price is inelastic.
Chapter 5
4. Use the distinction between the characteristics of private and public goods .
A Private, good not needed
B Airport Screening, needed but public
C Court Systems, Public, one persons use does not exclude the other persons use
D Mail Delivery, private, product can be had by other methods
E Medical Care, Private, allows other options
Problem 7:
Suppose in Fiscalville there is no tax on the first $10,000, of income, but Fiscalville imposes a 20% tax on earnings between $10000 and $20000 and a 30% tax on income between $20000 and $30000. Any income above $30000 is taxed at 40%. If your income is $50000, how much will you pay in taxes?
$13000-Marginal tax rate is 40% and average tax rate is 26%. This is a progressive tax since as income goes up, so does tax.
Monte Reynolds
What effect do each of the following have on the demand for small automobiles such as the mini cooper and smart car?
A Demand increases
B Demand increases
C Demand decreases
D Demand decreases
E Demand Increases
Question 6
What effect will each of the following have on the supply of auto tires?
A Advances in technology should increase the supply
B A decline in the number of firms in the tire industry will decrease supply
C Increase in the price of rubber will make supplies high due to passing the price on to the consumer
D Supplies will be less
E Supply is more since more people are buying more tires for big trucks
F Supply of tires will be more
G Supply of tires will be less
Chapter 4
3. What are the major determinants of price elasticity of demand?
A Bottled Water-Elastic
B Toothpaste-inelastic
C Crest-Elastic
D Ketchup-Inelastic
E Diamond Bracelet-Elastic
F Microsoft Windows-inelastic
Problem 4.
Danny Dimes Donahue, at $1.50 each price is elastic, at $1.00 price is inelastic.
Chapter 5
4. Use the distinction between the characteristics of private and public goods .
A Private, good not needed
B Airport Screening, needed but public
C Court Systems, Public, one persons use does not exclude the other persons use
D Mail Delivery, private, product can be had by other methods
E Medical Care, Private, allows other options
Problem 7:
Suppose in Fiscalville there is no tax on the first $10,000, of income, but Fiscalville imposes a 20% tax on earnings between $10000 and $20000 and a 30% tax on income between $20000 and $30000. Any income above $30000 is taxed at 40%. If your income is $50000, how much will you pay in taxes?
$13000-Marginal tax rate is 40% and average tax rate is 26%. This is a progressive tax since as income goes up, so does tax.