Using the CPI to compensate workers for inflation is appropriate because, in the face of a change in relative prices, people should be allowed to purchase the same bundle as they did before the price changes
Indicate whether the statement is true or false
False. This assumes that people would still prefer the original bundle. Because they are facing a new set of relative prices, compensating people so that they could purchase the original bundle will allow them to be able to achieve a higher level of utility than they did before the price changes.
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If an investment of $100 million from the United Kingdom is made in the United States, the $100 million is listed as a ________ entry in the ________ account
A) negative; current B) negative; capital and financial C) positive; capital and financial D) positive; official settlements E) positive; current
A monopolist can set any price it wants. So why does it still produce at a point where MC=MR, just like a perfectly competitive firm?
What will be an ideal response?
The above table gives some of the costs of the Delicious Pie Company. What is the average variable cost of producing 300 pies?
A) $1,800 B) $6 C) $5 D) More information is needed to calculate the average variable cost.
Which of the following assets had both the lowest average annual return and lowest risk between 1926 and 2011?
A) small company stocks B) large company stocks C) long-term corporate bonds D) U.S. Treasury bills