The second largest category, by relative importance, in the CPI calculation is
a. housing.
b. apparel.
c. transportation.
d. medical care.
c
You might also like to view...
Tom produces baseball gloves and baseball bats. Steve also produces baseball gloves and baseball bats, but Tom is better at producing both goods. In this case, trade could
a. benefit both Steve and Tom. b. benefit Steve, but not Tom. c. benefit Tom, but not Steve. d. benefit neither Steve nor Tom.
A Guatemalan company exchanges quetzal (Guatemalan currency) for dollars and then uses the dollars to purchase construction equipment from a U.S. company. These transactions
a. increase Guatemalan net capital outflow, and increases U.S. net exports. b. increase Guatemalan capital outflow, and decreases U.S. net exports. c. decrease Guatemalan net capital outflow, and increases U.S. net exports. d. decrease Guatemalan net capital outflow, and decreases U.S. net exports.
The Leontief production function:
A. is Q = max{bK, cL}. B. is Q = aK + bL. C. implies inputs are used in fixed proportions. D. implies inputs are used in variable proportions.
If movement of labor across countries is costless and painless, it can be expected that
A. all the countries in the world will operate at the full-employment level. B. the rate of unemployment will fall to zero in all the countries. C. the gross domestic product of the countries will equalize over time. D. the wage rates in the countries will equalize over time.