If the CPI was 102.4 in Year 1 and was 105.7 for Year 2, then the rate of inflation between Year 1 and Year 2 was:
(a) 2.2%.
(b) 3.2%.
(c) 4.2%.
(d) We need more information to calculate it.
Answer: (b) 3.2%.
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Which of the following are examples of job amenities?
a. a child-care center at work b. a pleasant view c. a workplace gymnasium d. all of the above
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
The curve labeled A is upward sloping because:
A. an increase in the demand for mushrooms increases the supply of mushrooms. B. of high fixed costs. C. variable costs increase as output increases. D. of diminishing returns to Moe's variable factors of production.
The two groups that benefit the most from quotas are
A. the importers who have the right to import the restricted good and the domestic producers of the restricted good. B. the domestic consumers of the restricted good and the domestic producers of the restricted good. C. the importers who have the right to import the restricted good and the domestic consumers of the restricted good. D. the domestic consumers of the restricted good and the foreign producers of the restricted good.
Which of the following is NOT true about so-called mortgage-backed securities:
A. Before the crisis, they were believed by many banks to be a way of reducing loan risks B. Before the crisis, they played a major role in broadening home ownership in America C. They were linkages that spread instability across many financial institutions D. Their use was strongly discouraged by the Federal government