1. Is the increase in standard of living the result of workers are making more money OR that their money is worth more because supply is higher with the increased productivity.
2. If the income or wealth of an individual increased, what would happen to his demand for a candy bar for lunch? Is this good a normal good or an inferior good?
3. A friend of yours mentions to you that his PIBP for a shirt is a range of $40-$50. What argument can you give him to explain it is not wise to have a range for his PIBP?
4. What is the law of supply? Answer carefully in words. What is the critical difference between supply and quantity supplied?
5. Is medicare considered a regressive tax? If so, why?