Suppose You Own a Courier Service and You Use Two

question 97

Multiple Choice

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs to purchase,and Model B,which costs $50 000 to purchase.You have a budget of for the purchase of new vehicles.Which of the following statements best describes the shape of your budget line?

• A)The budget line is concave to the origin,indicating that the opportunity cost of each model of vehicle increases with each additional unit purchased.
• B)The budget line is convex to the origin,indicating that the opportunity cost of each vehicle decreases with each additional unit purchased.
• C)The budget line is a straight line,indicating that the opportunity cost of each vehicle decreases with each additional unit purchased.
• D)The budget line is a straight line,indicating that the opportunity cost of each model of vehicle is independent of how many are purchased.
• E)The budget line is a straight line,indicating that the opportunity cost of each vehicle increases with each additional unit purchased.

Understand the concept of tax shifting and its implications on buyers and sellers.

Assess the regressive nature of certain taxes and identify exceptions.

Understand the basic concepts of tax incidence and how taxes affect market equilibrium.

Identify and distinguish between progressive, regressive, and proportional tax schedules.

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Definitions:

Empathy

Reacting to another’s feelings with an emotional response that is similar to the other’s feelings.

Marathon

A long-distance running event with an official distance of 42.195 kilometers, typically a race, requiring endurance and stamina.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience.

Accomplishment

The achievement of a goal or the completion of a task, often resulting in a sense of satisfaction.