Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the question on the basis of these data. year units of output price per unit 1 20 4 2 25 4 3 30 6 Refer to the above data. If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:
a) 4 and 6.
b)6 and 4.
c)120 and 100.
d) 100 and 150.
d) 100 and 150.
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In a market with a price support set above the equilibrium price,
A) consumers gain. B) taxes on consumers decrease. C) marginal benefit exceeds marginal cost. D) the market is efficient. E) farmers gain.
"Diseconomies of scale" occur in
A) the long run, but not the short run. B) the short run, but not the long run. C) both the short run and the long run. D) neither the short run nor the long run.
Suppose the economy includes two distinct groups of people: wage earners and goods sellers. If the price level increases by 50 percent and nominal wages remain unchanged,
a. there will be no redistribution of purchasing power because all private wage earners in the U.S. economy receive indexed wages b. real wages will remain the same because nominal wages do not change c. there will be no redistribution of purchasing power because only changes in real income can change the distribution of income d. income will be redistributed from wage earners to goods sellers e. income will be redistributed from goods sellers to wage earners
If goods are produced domestically but sold overseas
A. they are considered intermediate inputs and therefore not counted. B. they are still counted in our GDP. C. they are counted in our GDP and in the GDP of the country in which they were sold. D. they are not counted in our GDP.