The purchasing power parity (PPP) method
a. calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency.
b. calculates how much the general price level has increased within one specific country through time.
c. calculates how much the average standard of living across all countries has changed through time.
d. is used when one wants to compare dollar values from today with those from more than 100 years ago.
A
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On the Solow Diagram, an increase in productivity is shown by ________
A) an upward shift of the depreciation plus capital dilution line B) an upward shift of the investment function C) a downward shift of the depreciation plus capital dilution line D) a downward shift of the investment function
If people buy less flowers at every price when their incomes fall, then
a. flowers are a normal good. b. the demand for flowers is positively sloped. c. demand for flowers has increased. d. the price of flowers has increased. e. there has been a decrease in population that changed demand.
Assume that Bart's Batteries has entered into a resale price maintenance agreement with Radio Shanty but not with Prime Purchase. In this case,
a. the wholesale price of Bart's Batteries will be different for Radio Shanty than it is for Prime Purchase. b. Bart's Batteries will never increase profits by having a resale price maintenance agreement with all retail outlets that sell its products. c. Prime Purchase might benefit from customers who go to Radio Shanty for information about different batteries. d. Radio Shanty will sell Bart's Batteries at a lower price than Prime Purchase.
Economics is a:
A) social science that studies goods with no alternative uses. B) natural science that studies goods with no alternative uses. C) social science concerned chiefly with how people choose among alternatives. D) social science concerned chiefly with reasons why society has unlimited resources