If this year the CPI is 110 and last year it was 100, then
a. the cost of the CPI basket of goods and services has increased this year by 110 percent.
b. the price level as measured by the CPI has increased by 10 percent.
c. the inflation rate for this year has increased by 10 percent over last year's inflation rate.
d. All of the above are correct.
B
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Elizabeth just received her Ph.D. in economics and has two competing job offers. The first is in Washington, D.C. and pays a salary of $200,000 . She has a similar job offer in Austin, TX that pays $90,000 . Which pair of CPIs would make the two salaries have the same purchasing power?
a. 70 in Washington, D.C. and 42 in Austin, TX b. 140 in Washington, D.C. and 70 in Austin, TX c. 160 in Washington, D.C. and 72 in Austin, TX d. 210 in Washington, D.C. and 150 in Austin, TX
What action did the owner of the position illustrated above take in the futures or options market?
A. Buy a futures B. Sell a call option on futures C. Sell a futures D. Buy a put option on futures
Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is allowed 600 minutes of free calls and then pays 25 cents per minute for any calls above 600 minutes. Mary has used 300 minutes this month so far. What is her marginal cost per minute of making two more calls lasting 10 minutes each?
A. $0 B. $2.50 C. 25 cents D. 4 cents
A firm will use land up to the point at which MRPA = PA, where A is acres of land.
Answer the following statement true (T) or false (F)