Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost?

Pete consumes two goods, rice and fish. When the price of fish rises, he consumes less fish. When the price of rice rises, he consumes more rice. For Pete,

a. fish is not a Giffen good but rice is. b. rice is not a Giffen good but fish is. c. both fish and rice are normal goods. d. both fish and rice are Giffen goods.

The U.S. tax and transfer study done by economists Chamberlain and Prante of the Tax Foundation note that households in the top income quintile received about:

A. 75 cents in government spending for every dollar they paid in taxes B. 60 cents in government spending for every dollar they paid in taxes C. 40 cents in government spending for every dollar they paid in taxes D. 20 cents in government spending for every dollar they paid in taxes