What does it mean if the purchasing power in 1950 was 4.15 relative to the 1982 base year?
a. It took $4.15 in 1950 to buy what $1 bought in 1982.
b. The average price level in 1982 was five times as high as in 1950.
c. $4.15 in 1950 had the same nominal money value as $1 in 1982.
d. It took $4.15 in 1982 to buy what $1 bought in 1950.
e. Nominal prices have increased by more than 400 percent between 1950 and 1982, but the real value of money has not changed.
d
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If the two individuals' indifference curves through their endowment bundles are tangent to one another at the endowment bundle (in the Edgeworth Box), then the endowment bundle is a competitive equilibrium allocation.
Answer the following statement true (T) or false (F)
The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. The U.S
Department of Justice would classify the market for cookies in Eatsweetland as A) competitive. B) uncompetitive. C) moderately competitive. D) monopolistic.
If consumers were originally willing to buy 500 units of a good at a price of $20 are now willing to buy 500 units of the same good at a price of $10, that change would be described as a decrease in demand
a. True b. False Indicate whether the statement is true or false
Price discounts to selected buyers with the intent of driving out smaller competitors is
a. widespread in all industries b. common in the retailing industry only c. illegal under the Robinson-Patman Act d. allowed if the four-firm concentration ratio is less than 50 percent e. beneficial to consumers in the long run