Fifteen years ago your parents purchased some land with the idea of selling it later to help pay your college expenses. They purchased the land for $100,000 . They sold if for $180,000 . During the time they held it the price level rose from 80 to 120 . If your parents face a 25% tax rate, what was their real after-tax gain? (Hint: What's the real value of the land in current prices?)

When an economy experiences a zero rate of inflation, which of the following statements is definitely true?

A. Real incomes improve. B. There is no redistribution of income and wealth because of inflation. C. Relative prices do not change. D. Real incomes are affected by money illusion. E. The level of uncertainty increases in the economy

Based on the above figure, at which level of output does diminishing marginal returns first occur at Ike's Ice Cream Kitchen?

A) at 0 gallons B) at 10 gallons C) at 40 gallons D) at 60 gallons