Most countries tend to follow only one price index to measure the price level in an economy because all prices rise or fall at the same time or by the same amount
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to
A) decrease SUV production by 1 million. B) decrease SUV production by 3 million. C) decrease SUV production by 4 million. D) decrease compact car production by 3 million. E) acquire more resources and/or more advanced technology.
If you have $5,000 in wealth and the price level decreases by 20 percent, then
A) the $5,000 will buy fewer goods and services. B) the $5,000 will buy more goods and services. C) the real value of the $5,000 decreases. D) the real value of the $5,000 remains constant.
Competing-interest legislation is legislation that
a. imposes benefits on only a few individuals but imposes costs on many people b. imposes both benefits and costs on relatively few individuals c. imposes benefits on many individuals but imposes the costs on relatively few people d. imposes both benefits and costs on many individuals e. imposes costs only on those individuals who are rationally ignorant
Table 30.5Output (units)Labor (units)Output (units)Capital (units)101201262562383863Assume that in Table 30.5 the cost of labor is $4 per unit and the cost of capital is $6 per unit. In Table 30.5, what is the cost efficiency of the second unit of capital?
A. 56 units per $1 of cost. B. 9.33 units per $1 of cost. C. 6 units per $1 of cost. D. 36 units per $1 of cost.