The CPI is based on a representative group of goods called the market basket
Indicate whether the statement is true or false
True
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A bank has excess reserves of $4,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be
A) -$5,000. B) -$1,000. C) $1,000. D) $5,000.
The fundamental rule of profit maximization is for the firm to produce where
a. MR = MC b. ATC is minimized c. quantity of output is maximized d. it is most efficient e. total revenue is maximized
When marginal cost is less than average total cost,
a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising.
Changes in the output of a perfectly competitive firm, without any change in the price of the product, will change the firm's
a. total revenue. b. marginal revenue. c. average revenue. d. All of the above are correct.