You know that a candy bar cost five cents in 1962 . You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today's prices?
a. five cents (1962 CPI / today's CPI)
b. five cents ((today's CPI - 1962 CPI)/1962 CPI)
c. five cents (today's CPI / 1962 CPI)
d. five cents today's CPI - five cents 1962 CPI.
c
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The figure above shows that as a result of the tariff, producer surplus in the United States
A) decreases by $105 million per year. B) increases by $55 million per year. C) decreases by $30 million per year. D) decreases by $20 million per year. E) remains unchanged.
Which of the following is a fixed cost of driving a car?
a. gasoline b. maintenance c. tires d. license plates e. motor oil
Which of the following observations is true?
a. Free markets will achieve all of society's goals. b. The ability to buy goods is divided equally among consumers. c. The market deals with efficiency in production through the profit motive. d. The market system encourages firms to use inputs wastefully.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm's isocost line could shift from CD to CE if the
A. firm's total expenditures increased by 50% or the price of capital and labor each decreased by 33%. B. price of labor decreased by 50%. C. firm's total expenditures increased by 50%. D. price of labor increased.