A measure of the average price of a given class of goods or services relative to the price of the same goods and services in a base year is called a:
A. real quantity.
B. rate of inflation.
C. price index.
D. real price.
Answer: C
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If the economic growth rate INCREASES from 1% to 5%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases. B) investment will fall as output increases. C) investment will rise since the rate of change in output increases. D) None of the above is correct.
Refer to Scenario 2.1. What is the equilibrium price of books?
A) 5 B) 10 C) 15 D) 20 E) none of the above
Sometimes On Time (SOT) Airlines is considering buying a new jet. SOT would be more likely to buy a new jet if there were either
a. a decrease in the price of a new jet or a decrease in the interest rate. b. a decrease in the price of a new jet or an increase in the interest rate. c. an increase in the price of a new jet or a decrease in the interest rate. d. an increase in the price of a new jet or an increase in the interest rate.
In 1991, what group of countries began the process of forming the largest free-trade zone in the world?
A. the United States, Canada, and Mexico B. the North Atlantic Treaty Organization C. the European Community D. the Organization of Petroleum Exporting Countries