If the consumer price index (CPI) in Year 1 was 200 and the CPI in Year 2 was 215, the rate of inflation was:
a. 215 percent.
b. 15 percent.
c. 5 percent.
d. 7.5 percent.
e. 8 percent.
d
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The fraudulent delivery of low quality experience goods at high prices is more likely if
a. interest rates decline b. information about notorious firms is speedily disseminated c. price premiums for allegedly high quality increase d. sellers invest in non-transferable reputation e. none of the above
In the short run, a firm operating in a monopolistically competitive market can earn
a. positive economic profits. b. economic losses. c. zero economic profits. d. All of the above are possible.
An increase in the demand for houses
a. increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor. b. increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor. c. decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor. d. decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
In practice, placing a price control on a natural monopoly:
A. always creates the same outcome as public ownership of the industry. B. is easy and commonly practiced. C. is difficult because of lack of information. D. is never a good idea.