The Textbook Shows That the Inflation-Adjusted Movie Receipts for Titanic

question 114

Multiple Choice

The textbook shows that the inflation-adjusted movie receipts for Titanic (released in 1997) were $3,205,455,051 in 2015 and the original receipts were $2,186,772,302.The implication is that

• A) prices were about the same in 2015 as in 1997.
• B) hyperinflation has occurred since 1997.
• C) prices were about one-third lower in 2015 than they had been in 1997.
• D) prices were roughly 50% higher in 2015 than they had been in 1997.
• E) Titanic was a bad movie at the time of its release but has become more popular over time.

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Definitions:

Excise Taxes

Taxes imposed on the sale of specific goods and services, such as tobacco, alcohol, and gasoline, usually aimed at discouraging their consumption or generating revenue.

Regressive Tax

A tax that takes a larger percentage from low-income earners than from high-income earners, considered regressive because it affects those who are less able to pay.

Proportional Tax

A tax system where the tax rate is fixed and the same for all income levels.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income of the individual or entity increases.