Suppose the CPI in 1950 was 24.1 and the CPI in 1975 was 53.8 . When Ken's income rose from $10,000 per year in 1950 to $20,000 per year in 1970, Ken's standard of living improved between 1950 and 1970
a. True
b. False
Indicate whether the statement is true or false
False
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In determining whether a market meets the conditions for perfect competition, it is necessary to
A. consider the number of firms in the market. B. determine the appropriate size of the firm. C. assess the production technology available to firms. D. evaluate the promotional tools that can be used by firms.
If the dollar/pound exchange rate is $2/£, a Big Mac costs $5 in New York City and costs £2 in London, the pound is ________, and U.S. tourists will be ________
A) overvalued; better off in London B) overvalued; better off in New York C) undervalued; better off in London D) undervalued; better off in New York
In the classical model, the aggregate supply curve is
A. a horizontal line. B. a vertical line. C. an upward sloping line. D. a combination of horizontal, upward sloping, and vertical lines.
Consider a closed economy without the government. If the savings rate in the economy is 15% and the aggregate savings is $6,000, the GDP of the economy is:
A) $15,000. B) $27,000. C) $40,000. D) $30,000.