The CPI is a useful index for all of the following reasons except
A. it is used to determine whether people's incomes are keeping up with the costs of the things they buy.
B. it is used to measure changes in the cost of living.
C. it used to measure the average price level of all final goods and services produced.
D. it is used to compute the U.S. inflation rate.
Ans: C. it used to measure the average price level of all final goods and services produced.
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Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the price of an input b. An increase in productivity c. An increase in the price of a substitute in production d. A decrease in the expected future price of a product e. A decrease in the current price of the product
Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?
A) an outcome in which wages are roughly equal around the world B) an outcome in which the standard of living is roughly equal around the world C) an outcome in which an individual can choose to specialize in a certain line of work and be certain that he or she can make a living at that until retirement D) an outcome in which resources are devoted to their most efficient use
What is the role of the Federal Deposit Insurance Corporation?
a. To insure bank deposits b. To act as a lender of last resort c. To establish regulations for commercial banks d. To monitor the actions of commercial banks e. To insure the assets of commercial banks
Suppose the cost of flying a 100-seat plane for an airline is $50,000 and there are 10 empty seats on a flight. The marginal cost of flying a passenger is
a. $50. b. $500. c. $50,000. d. This cannot be determined from the information given.