A measure that allows us to compare the prices of consumer goods and services in the year 2000 that a household typically purchases to the prices of those goods and services the household purchased in the base year 1997 is
a. the GDP deflator
b. the consumer price index
c. the price level
d. inflation
e. the base measure
B
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According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
Transfer payments have reduced poverty among the elderly, but poverty among females has not fallen
a. True b. False
The reason why national defense is commonly provided by the government, while food is not, is that food:
a. is too essential to survival to be provided by a bureaucratic organization. b. manufacturers have successfully lobbied the government to stay out of the food industry. c. can easily be withheld from those who refuse to pay for it. d. provision is subject to a free-rider problem.
Suppose you owned a kiosk where you sold T-shirts to other students and that after conducting a quicksurbey you find that at the current price the price elasticity of demand for your T-shirts is inelastic. Knowing this, if you wanted to increase the total revenue from selling T-shirts you should:
a. increase the price b. decrease the price c. leave the price where it is d. give away T-shirts e. none of the above