Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50¢ per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75¢ per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
A. 100.
B. 115.
C. 126.
D. 130.
Answer: B
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People who are currently not working but are actively looking for work are officially classified as
A) employed and out of the labor force. B) unemployed and out of the labor force. C) employed and in the labor force. D) unemployed and in the labor force.
If the firm is maximizing profits (minimizing losses), they are making a profit or loss of about ____.
A. -$1,000
B. $500
C. $3,000
D. $2,500
Lags in the policy-making process come from:
A. the time it takes for policy to have an impact on the economy. B. the process of deciding on and passing legislation. C. lack of understanding the current state of the economy. D. All of these are true.
Nominal income per person in the United States in 1960 was about $2,800 per year, while in 1990 nominal income per person was about $21,000. This indicates that
A. people enjoyed a standard of living about 7.5 times higher in 1990 than in 1960. B. the average person would consider him/herself about 7.5 times happier in 1990 than in 1960. C. nominal income was about 7.5 times greater in 1990, but we can't tell if this increase is due to inflation, economic growth, or a combination of the two. D. a dollar in 1960 was worth less than a dollar in 1990.