Answer:
Yes because a person with a lower income may tend to spend a greater share of his income on gasoline
Explanation:
For example, if a low income individual earning $1000 and a high-income person who earns $2000 each purchase 12 gallons of gasoline, the taxes on this purchase will consume a larger portion of the low-income person’s earnings than that of the high-income person. Assuming a tax rate of 5% of earnings multiplied by 12 Gallons.
Low income individual earnings after tax deductions= $400
High income individual earnings after tax deductions= $800
Answer:
The answer is A.Entertainment 10%, Clothing 10%.
Explanation:
Answer:
GDP in 2008 is $500 billion
Explanation:
Based on the information provided within the question it can be said that in this scenario we can conclude that the Gross Domestic Product (GDP) in the year 2008 is of $500 billion dollars. That is because the gross domestic product calculates the monetary value of all the goods and services that were produced within the nation's borders.
Answer:
The correct answer is option d.
Explanation:
Monopolistic competition is the market where there is a large number of firms producing differentiated products. The firms are price makers and face a downward sloping curve. There is very low or no barriers to entry and exit.
A perfect competition has a large number of firms producing identical products. These firms are price takers and face a horizontal line demand curve. There are very low or no barriers to entry and exit.
The firms in both market forms are trying to maximize profits. The market demand curve is also downward sloping in both. But the monopolistic competition produces differentiated products and firms are price makers.
