Suppose there are two good types (Type 1 and Type 2) and suppose the weights for the types are 70% for Type 1 and 30% for Type 2. Suppose the Price Index for Type 1 is 200 and the Price Index for Type 2 is 100. The overall price index is
A. 150.
B. 140.
C. 300.
D. 170.
Answer: D
You might also like to view...
If a firm did not have any fixed costs at all, then the ATC curve would be
a. the same as the AVC curve. b. horizontal. c. positive and linear. d. none of these.
Which of the following statements concerning bank regulation in the United States is TRUE?
A) The Office of the Comptroller of the Currency has the primary responsibility for state banks that are members of the Federal Reserve System. B) The Federal Reserve and the state banking authorities jointly have responsibility for the state banks that are members of the Federal Reserve System. C) The Office of the Comptroller of the Currency has sole regulatory responsibility over bank holding companies. D) The state banking authorities have sole regulatory responsibility for all state banks.
Which of the following is correct when a price is set below a market's equilibrium price?
a. quantity demanded exceeds quantity supplied at the set price b. quantity demanded is less than quantity supplied at the set price c. quantity demanded is equal to quantity supplied at the set price d. at the set price there is a surplus e. the market price is less than the ceiling price
Suppose a firm manager has a base salary of $85,000 and earns 0.5 percent of all sales. Determine the manager's income if revenues are $2,000,000 and profits are $500,000.
A. $50,000 B. $95,000 C. $170,000 D. $87,500