If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately
A. 4%.
B. -4%.
C. -4.2%.
D. 4.2%.
Answer: B
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If a country faces action under Section 301 of the U.S. Trade Act of 1974, it means that the country has
A) exceeded average import growth by more than 301 percent. B) exceeded average export growth by more than 301 percent. C) tariffs that are above 301 percent. D) been charged by the United States with systematically engaging in unfair trade practices. E) been charged by the WTO with violating its trade obligations.
Lisa Beth loves bananas and derives 10 utils of total utility eating the first one. When she consumes a second banana, her total utility increases to 15 utils. Eating the third raises her total utility to 18 utils. Economists reading her likes and dislikes conclude that
a. because the total utility of the first is 10, she is better off consuming that one and no more b. because the marginal utility of the third banana is 18/3 = 6 utils, she would be better off adding that third to consumption because 6 utils is still better than zero c. the marginal utility of the second banana is 8 utils, which means she should not eat it d. the marginal utility of the first banana is zero, even though total utility is 10 utils because at zero bananas, total utility is zero e. the marginal utility of the third banana is 3 utils, which conforms to the law of diminishing marginal utility
Suppose that with 1 unit of labor, Canada can produce 40 TVs or 20 computers. With 1 unit of labor, Taiwan can produce 30 TVs or 10 computers. Which of the following is correct?
a. Taiwan has a comparative advantage in the production of computers. b. Canada has an absolute advantage in the production of neither good. c. Canada has a comparative advantage in the production of computers. d. Taiwan has an absolute advantage in the production of computers. e. Taiwan has an absolute advantage in the production of TVs.
One of the reasons that neighboring countries tend to ally is similar consumer tastes.
a. true b. false