If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 to purchase those identical goods in 2015, then the price index for the base year is
A. (11000/10000)*100=110.
B. (10000/11000)*100=90.9.
C. 100.
D. none of these
Answer: C
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The best description of US economic growth during the 1800s is:
a. The annual growth rate for the 20 years preceding the Civil War was about the same as the annual growth rate from 1870-1899 while the growth rate during the Civil War was higher than either period. b. The annual growth rate for the 20 years preceding the Civil War was lower than the annual growth rate from 1870-1899 c. The annual growth rate for the 20 years preceding the Civil War was greater than the annual growth rate from 1870-1899
The law of diminishing marginal returns says that as additional units of a variable input are added to
a. fixed amounts of other inputs, total output will eventually remain constant b. varying amounts of other inputs, total output will eventually decline c. fixed amounts of other inputs, the resulting increases in total output will eventually become smaller d. varying amount of other inputs, the resulting increases in total output will eventually become smaller e. a declining amount of output, technology will eventually deteriorate
According to economists, money is a resource
Indicate whether the statement is true or false
A natural monopoly exists when
A. increasing marginal returns and the ability to obtain quantity discounts from suppliers leads to a single-firm industry. B. control of a key input leads to a single-firm industry. C. economies of large-scale production are substantial, leading to a single-firm industry. D. the government restricts entry that leads to a single-firm industry.