The inflation rate measures the percentage increase in the price level from one year to the next
Indicate whether the statement is true or false
TRUE
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U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, imposed annual costs on American consumers of
A) $2,000,000. B) $1,500,000. C) $1,000,000,000. D) $200,000. E) $370,000.
If this year the CPI is 110 and last year it was 100, then
a. the cost of the CPI basket of goods and services has increased this year by 110 percent. b. the price level as measured by the CPI has increased by 10 percent. c. the inflation rate for this year has increased by 10 percent over last year's inflation rate. d. All of the above are correct.
If the government allowed a free market for transplant organs such as kidneys to exist, critics argue that such a market would
a. not reduce the shortage of organs. b. benefit rich people but not poor people. c. be inefficient because markets are not good at allocating scarce resources. d. be inferior to a plan imposed by a benevolent dictator.
A tariff ______ the domestic price of a good and ______ the quantity sold.
A. increases; increases B. decreases; decreases C. increases; decreases D. decreases; increases