The price tag on a golf ball in 1975 read $0.20, and the price tag on a golf ball in 2005 read $2.00 . The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3 . In 1975 dollars, a 1975 golf ball cost $0.20 and a 2005 golf ball cost
a. $0.55, so golf balls were cheaper in 1975.
b. $0.55, so golf balls were cheaper in 2005.
c. $7.32, so golf balls were cheaper in 1975.
d. $7.32, so golf balls were cheaper in 2005.
a
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Capital gains are
A. the amount of income a taxpayer has after taxes are paid. B. total sales prices from assets. C. any profit you have from asset sales. D. total net income from all sources.
Why are free riders a common problem for public goods?
A. Public goods are non-excludable and therefore people do not have to pay for the good to use it. B. Public goods are non-rivalrous and therefore one person's use diminishes another's use. C. Public goods are non-rivalrous and therefore people do not have to pay for the good to use it. D. Public goods are non-excludable and therefore one person's use does not diminish another's use.
Why do necessities tend to have demand that is price inelastic, while luxuries tend to have demand that is price elastic?
What will be an ideal response?
The law of demand states that the quantity demanded of a good and
a. the price of a substitute are positively related b. its price are inversely related c. its price are positively related if it is an inferior good d. the wealth of buyers are positively related e. its price are inversely related if it is a normal good