During recent elections, consumer groups in various states attempted to get the sales tax on all medicines and drugs removed. They argued that such a tax is "severely regressive." What is the economic interpretation of their statement?
a. The poor get ill more often than do the rich.
b. The poor pay higher prices for medicine and drugs than do the rich.
c. The poor pay a higher percentage of their income for medicine and drugs than do the rich.
d. All consumers pay too much money for medicine and drugs.
e. The sales tax discourages the poor from seeking medical treatment.
C
Economics
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The opportunity cost of any action is
A) all the possible alternatives given up. B) the highest-valued alternative given up. C) the benefit from the action minus the cost of the action. D) the dollars the action cost.
Economics
Refer to Figure 4-1. If the market price is $2.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $1.50 D) $0
Economics