Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index (CPI) is currently 110. This indicates the price of the market basket of goods and services is now:
A. $110.
B. $1,000.
C. $1,100.
D. $1,225.
Answer: C
You might also like to view...
As new substitutes for office productivity software are developed, the demand for workers in office productivity software production should
A) become more elastic. B) become less elastic. C) be unchanged. D) change in an undetermined way.
The absolute value of the elasticity of demand for a "necessity" good with few close substitutes is:
a. Equal to 0. b. Less than 1. c. Greater than 1. d. Equal to 1.
The debt-to-GDP ratio is higher,
A) the lower the real interest rate. B) the lower is the ratio of the primary deficit to GDP. C) the higher is the growth rate of output. D) all of the above E) none of the above
Explain how the market supply curve is derived in a perfectly competitive market. Identify five factors that would cause the market supply curve to shift.
What will be an ideal response?