If real salaries decrease but nominal salaries do not, this means that:
A. the purchasing power of money has increased.
B. prices have not changed.
C. prices have risen.
D. prices have fallen.
Answer: C
Economics
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A shoe salesman working on commission must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20% to 70% but would cost him $5 . If the average price of shoes is $100, what is the minimum commission rate would induce him to work hard?
a. 4% b. 6% c. 8% d. 10%
Economics
Excise taxes are
a. proportional since everyone pays the same tax rate b. progressive since richer people buy more things c. regressive since they represent a greater percent of poor people's incomes d. proportional taxes since everyone has the same tax bill e. progressive since richer people have higher tax bills
Economics