Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Alright guys Economic assistance?

Discuss anything relating to Consumer Law

Alright guys Economic assistance?

Postby herald » Tue Apr 10, 2012 8:03 am

1.Decreasing government spending usually
a. decreases the inflation rate.
b. increases the stagflation rate.
c. decreases the stagflation rate.
d. increases the inflation rate.

2.Inflation is low but the unemployment rate is the highest seen in several years. Economists report signs that the economy is beginning to improve. The economy is likely in
a.expansion.
b.a peak.
c.recession.
d.a trough.

3.Reading from left to right, which list shows the tax types that proportionally increase with a rise in income?
a.regressive, progressive, proportional
b.proportional, regressive, progressive
c.regressive, proportional, progressive
d.progressive, regressive, proportional

4.Which of the following is the least profitable investment for a cell phone company earning $10 per plan contract?
a.opening a new store location with $200 daily operating cost, generating 30 new plans per day
b.creating television commercial at $25 daily operating cost, generating 15 new plans per day
c.offering free $10 gift for every new plan, generating 40 new plans per day
d.redesigning web site at $50 daily operating cost, generating 10 new plans per day

5.One benefit of regulating a natural monopoly is that
a.competition between products improves quality.
b.consumers have many choices.
c.the government ensures the supplier works safely and efficiently.
d.consumers do not have to research different companies.
herald
 
Posts: 24
Joined: Fri Apr 01, 2011 12:30 pm
Top

Alright guys Economic assistance?

Postby scirwode » Tue Apr 10, 2012 8:04 am

1. a (in theory according to John Maynard Keynes and a few other economists. But it's hard to draw a direct correlation with inflation and government spending alone. Many other factors affect this. And stagflation has to do with a LOT more than government spending since it refers to both inflation and unemployment).

2. a (any type of improvement indicates economic expansion).

3. c (regressive is the least proportionate in rise of income tax, proportionate is a more balanced tax rate based on varied income, and progressive is a much higher change in tax based on income level).

4. c (a would yield a $100 daily profit, b would yield a $125 daily profit, c would yield a $0 daily profit - or no gains - and d would yield a $50 daily profit).

5. d (a: competition can lower quality in an effort for companies to provide the lowest cost goods for consumers, b: consumers have few, if any choices when there is a monopoly, c: although this is sometimes true, there's no guarantee that safety and efficiency will be high - although in many cases it is. And d: since a monopoly eliminates competition, there are fewer companies to look into).
scirwode
 
Posts: 23
Joined: Fri Apr 01, 2011 9:46 pm
Top


Return to Consumer Law

 


  • Related topics
    Replies
    Views
    Last post