27. You plan to eat at a fast-food restaurant for dinner tonight. Your choices are Chick-fil-A, Bojangles, McDonalds, and Panda Express. Your first choice is Bojangles, and your second choice is Panda Express. What is the opportunity cost of eating at Bojangles?
a. The dollar value of your meal at Bojangles
b. Eating at McDonalds
c. Eating at Chick-fil-A
d. Eating at Panda Express
e. Eating at Bojangles
28. Madison has two job offers, one in New York, NY and another in Detroit, MI. The job in New York offers a \$100,000 salary, and the job in Detroit offers a \$85,000 salary. The price level in New York is 330, the price level in Detroit is 290. Which job will Madison accept if she wants to accept the job with the highest real salary?
a. Not enough information given
b. Both offer the same real salary
c. The job in Detroit because it has the higher real salary
d. The job in New York because it has the higher real salary
e. The job in New York because it has the higher nominal salary
29. Which of the following is a shortcoming of GDP?
a. GDP does not measure the total amount of money in the economy
b. GDP excludes all government spending from its calculation
c. GDP does not account for the quality of the environment
d. GDP includes illegal activities and unreported transactions, inflating its value
e. GDP does not include spending on goods and services produced domestically
Use the following prompt and tax brackets for questions 30 and 31. An individual makes \$120,000 a year and saves \$15,000 for retirement. The standard deduction is \$12,000.
Taxable Income Tax Rate
\$0 - \$15,000 10\%
\$15,001 - \$75,000 15\%
\$75,001 - \$150,000 25\%
Over \$150,000 40\%
30. What is the total amount of taxes owed by this individual?
a. \$21,750
b. \$18,750
c. \$18,000
d. \$15,000
e. \$23,250
