The Consumer Price Index (CPI) is constructed by
What will be an ideal response?
comparing the value of a "market basket" of goods that consumers typically purchase to the value of the basket in a base year. correct
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U.S. currency has value primarily because it:
A. is relatively scarce, is legal tender, and is generally acceptable in exchange for goods and services. B. facilitates trade, is legal tender, and permits the use of credit cards and near-monies. C. is legal tender, is generally acceptable in exchange for goods or services, and is backed by the gold and silver of the federal government. D. is generally acceptable in exchange for goods or services, is backed by the gold and silver of the federal government, and facilitates trade.
If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, only the United States would benefit from trade if the actual terms of trade between corn and wheat were 2:1.
Answer the following statement true (T) or false (F)
Which of the following statements concerning the International Monetary Fund is true?
a. The IMF was created to help finance economic development in poor countries. b. One of the principal aims of the IMF is to discourage international trade and encourage countries to become self-sufficient. c. The IMF lends money to countries experiencing large balance-of-payments surpluses. d. When the IMF lends currencies, it always insists on the borrowing country taking action to reduce its balance-of-payments surplus. e. The IMF obtains funds from annual membership fees charged to member countries.
The U.N.'s Millennium Poverty Goal is to
A. Keep the number of people in poverty at a constant level. B. Cut the percentage of people in extreme poverty in half worldwide. C. Reduce the percentage of people in severe poverty in the poorest nations. D. Cut the absolute number of people in extreme poverty in half worldwide.