With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning $8,000 dollars would receive a subsidy of:

A dining table costs $3,000 in New York and same table costs 5000 euros in Rome. If absolute PPP holds, $1 is equal to

A) 1 euro B) 2 euros C) 5/3= 1.67 euros D) 3/5= 0.6 euros

Suppose a firm in each of the two markets listed below were to increase its price by 25 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?

a. restaurants and MP3 players b. electricity and natural gas c. corn and satellite radio d. rice and soybeans