Assume that there was a 5 percent increase in the price of all goods in 2015; if the base year is 2014, then the price index in 2015 will be

A) 95.
B) 105.
C) 110.
D) 1100.


B

Economics

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An essential difference in the impact of import quotas as opposed to tariffs is that

A. import quotas generate no revenue for the government, whereas tariffs do. B. tariffs result in price increases for the foreign goods affected, whereas quotas do not. C. import quotas result in lower sales of foreign goods, whereas tariffs do not. D. tariffs are protectionist, whereas import quotas are oriented toward free trade.

Economics

If wage rates are lower in Mexico than in Germany, labor costs per unit of output can still be higher in Mexico

a. True b. False

Economics

_____ is the primary reason that explains why some nations are richer than the others

a. A democratic government b. A strong judicial system c. Access to education d. Private ownership e. A stable currency

Economics

The monopolist often charges its customers _______ prices and provides ________ service than it would if it had competitors.

A. higher; better B. higher; poorer C. lower; better D. lower; poorer

Economics