Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that
a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year.
b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year.
c. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year.
d. neither the price of pretzels nor the price of cookies changes from year to year.
c
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Always there wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?
A. $200 B. $150 C. $225 D. $112.50
If money raised in the issue of new stocks and bonds is used effectively,
a. the income from them is not subject to double taxation. b. a firm need not meet SEC requirements. c. the stock is being "watered." d. they generate the means of repayment.
Loans are better than grants for higher education.
A. True B. False C. Uncertain
The income-expenditure identity says that
A. Y = C + I + G + NX + CA. B. Y = C + S + T. C. Y = C + I + G. D. Y = C + I + G + NX.