What effect would a simplification of federal tax law have on the cost of hiring a tax accountant?
A) It would fall because tax accountants would have fewer valuable opportunities.
B) It would rise because tax accountants would have to raise their prices to maintain their incomes.
C) It would have no effect because only supply affects costs, not demand.
D) It would have very little effect because most of the costs of becoming an accountant are sunk costs.
A
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If a rent ceiling is set ________ the equilibrium price, the effect can result in a housing ________
A) below; surplus B) below; shortage C) above; shortage D) above; surplus E) equal to; surplus
Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309 . The price of copper increased by
a. less than inflation, and this means it became relatively less scarce. b. less than inflation, and this means it became scarcer. c. more than inflation, and this means it became scarcer. d. more than inflation, but this doesn't necessarily mean that it become scarcer.