The "core" inflation rate is typically defined as the change in consumer prices for all goods included in the CPI basket except energy and food products
Suppose the overall inflation rate based on the CPI was 4 percent for the past year, and energy and food prices did not change during the year. Is the core inflation rate for the past year higher or lower than 4 percent? A) Higher
B) Lower
C) They are the same
D) We do not have enough information to answer this question
A
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Whenever the opportunity costs of goods are significantly different in different countries, there are gains from specialization and trade
a. True b. False
Which of the following are government franchises?
a. Regional phone companies. b. The United States Postal Service. c. Electric utilities. d. All of the above.
Consider a firm that uses only one fixed input and one variable input. a . Explain how this firm's ATC, AVC, and AFC curves will be affected by a government tax on the fixed input. b. Explain how this firm's ATC, AVC, and AFC curves will be affected by a government tax on the variable input. c. When would a tax on an input cause the MC curve to change?
In some respects, the U.S. has fallen behind other nations
a. True b. False Indicate whether the statement is true or false