In the calculation of the CPI, tea is given greater weight than beer if
a. the price of tea is higher than the price of beer.
b. it costs more to produce tea than it costs to produce beer.
c. tea is more readily available than beer to the typical consumer.
d. consumers buy more tea than beer.
d
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Government is viewed in the economic way of thinking as many different people interacting on the basis of
A) fear of punishment rather than hope for reward. B) legal considerations rather than profitability. C) prevailing property rights. D) principles of cooperation rather than of competition. E) regard for the public interest rather than private interest.
Nominal gross domestic product for the United States was $7,661.6 billion in 1996 and $8,110.9 billion in 1997 . The GDP deflator was 109.5 in 1996 and 111.6 in 1997
a. What was the 1997 real GDP expressed in 1996 prices? b. What were the 1996 and 1997 GDPs expressed in base-year prices? c. What was the percent change in the nominal GDP between 1996 and 1997? d. What was the percent change in real GDP between 1996 and 1997? e. What was inflation between 1996 and 1997?
Volatility
What will be an ideal response?
Professor's economics students are constructing models for how gasoline prices change. Maria's model has very realistic assumptions and is quite complex. Anna's model is less complicated and less realistic. Maria's model correctly predicts gas price increases 5% of the time. Anna's model predicts correctly 15% of the time. On the basis of usefulness or "goodness," Professor will give which student's model the higher grade and why?
A. Maria's model gets the higher grade because it is more realistic. B. Anna's model gets the higher grade because it predicts accurately more often. C. Maria's model gets the higher grade because it is more complex. D. Anna's model gets the higher grade because it is simpler.