If the consumer price index (CPI) in Year 1 was 200 and the CPI in Year 2 was 215, the rate of inflation was:
a. 15 percent.
b. 7.5 percent.
c. 5 percent.
d. 215 percent.
b
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Which of the following is not a usual consequence of inflation?
A) Income is redistributed among people. B) People are misled into supposing that their earnings have risen substantially. C) People believe that rising prices have made them worse off. D) The cost of living goes up for everyone. E) The value of money falls.
A typical behavior that violates the assumption of rational behavior is:
A. saying you want to lose weight, but ordering dessert. B. being willing to pay more for something if you use a credit card than if you use cash. C. stubbornly watching to the end of a movie you've decided you're not enjoying at all. D. All of these demonstrate irrational behavior.
According to the table shown, what can be said about the cost of living in 2011?
A. It increased 5.3 % from the previous year, and consumers were worse off if their nominal income did not change.
B. It increased by 5.0 % from the previous year, and consumers were better off if their nominal income did not change.
C. It is the base year, so no comparisons can be made in this year.
D. It is the base year, so the cost of the basket of goods did not change.
The export supply curve shows a country's:
a. domestic surplus at various prices below the "no-trade" equilibrium price. b. domestic shortage at various prices below the "no-trade" equilibrium price. c. domestic supply at the "no-trade" equilibrium price. d. domestic surplus at various prices above the "no-trade" equilibrium price. e. domestic shortage at various prices above the "no-trade" equilibrium price.