The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2010, the base year, the typical consumer purchased 10 books for $25 each and 25 hamburgers for $2 each. In 2015, the typical consumer purchased 15 books for $30 each and 30 hamburgers for $3 each. The consumer price index for 2015 on Planet Econ equals:
A. 1.45
B. 1.00
C. 1.25
D. 1.15
Answer: C
You might also like to view...
When the marginal product of an input is ______ than the average product, the marginal units of the input _____ the average product.
A. larger; lower B. smaller; raise C. smaller; do not affect D. larger; raise
If this is a closed economy how many cars will be exchanged?
A. 60,000 B. 20,000 C. 40,000 D. 80,000
Which of the following relations is the slope along a given isoquant?
A. 0 = {?F(K,L)/?L} dK + {?F(K,L)/?K} dL B. dQ = {?F(K,L)/?K} dL + {?F(K,L)/?L} dK, where dQ > 0 C. 0 = {?F(K,L)/?L} dK + {?F(K,L)/?L} dL D. dQ = {?F(K,L)/?K} dK + {?F(K,L)/?L} dL, where dQ > 0
Economists infer that a consumer receives more utility from one good than another by
A. observing the consumer's behavior. B. giving consumers surveys about the utility they receive from the goods. C. means of introspection and speculation. D. the logic of the models used.