A price index is:
a) a comparison of the current price of a market basket to a fixed point of reference.
b) a comparison of real GDP in one period relative to another.
c) the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period.
d) a ratio of real GDP to nominal GDP.
a) a comparison of the current price of a market basket to a fixed point of reference.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
The horizontal axis on a time-series graph
A) measures the variable being graphed. B) measures units of time such as years. C) runs parallel to the y-axis. D) measures how the variable being graphed changes.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. For Jerry, the opportunity cost of building a fence is ________ dishes made.
A. 7 B. 4 C. 14 D. 2
Video rental stores in cities are an illustration of:
a. perfect competition. b. monopolistic competition. c. monopoly. d. oligopoly.