A New Pentium Computer Costs Less Than a 486 Computer

question 107

Multiple Choice

A new Pentium computer costs less than a 486 computer when it first came out three years earlier.The real price of personal computers over the last three years has

• A)decreased.
• B)increased.
• C)stayed the same.
• D)changed,but there is not enough information to tell in which direction.

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Definitions:

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, the disabled, and children of deceased workers.

Labor Tax

Taxes levied on the wages and income generated from labor, which can affect employment and labor supply decisions in the economy.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved.

University

An institution of higher education and research which awards academic degrees in various academic disciplines and provides both undergraduate education and postgraduate education.