Inflation is a measure of the ________ of prices; the CPI is a measure of the ________ of prices.
A. current level; rate of change in the level
B. index; base year's level
C. base year's level; index
D. rate of change in the level; current level
Answer: D
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Aid sent to a foreign country is an example of ________
A) transfer payment to the foreign country B) export by the home country C) import by the home country D) factor payment to the foreign country
Refer to Scenario 12.2. In this game, Jerome's tough strategy would lead to his preferred equilibrium of
A) Eliza donates a kidney and Jerome does not. B) both Eliza and Jerome donate a kidney. C) Jerome donates a kidney and Eliza does not. D) neither Eliza nor Jerome donates a kidney.
According to Thomas (1954), increased immigration provided incentive to invest in capital that was
(a) labor-using, resulting in capital widening. (b) labor-using, resulting in capital deepening. (c) labor-saving, resulting in capital widening. (d) labor-saving, resulting in capital widening.
Eric provides cheese (H) and milk (M) to the market with the following total cost function: C(H, M) = 10 + 0.4H2 + 0.2M2. The prices of cheese and milk in the market are $2 and $5 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of cheese maximizes profits?
A. 10 B. 2 C. 2.5 D. 5