The Consumer Price Index was 247 in year 1 and 272 in year 2. The rate of inflation in year 2 was:
a. 6 percent
b. 12 percent
c. 8 percent
d. 10 percent
d. 10 percent
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Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing the portion of consumer surplus transferred to producers as a result of the price floor?
A) A + B B) B C) A D) B + C
Refer to Table 11-1. What is the marginal product of the 4th worker?
A) 137 pounds B) 50 pounds C) 12.5 pounds D) 5 pounds
A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid
A) coupon bond; discount B) discount bond; discount C) coupon bond; face D) discount bond; face
Suppose that an individual consumes just two goods: Big Macs and milkshakes. In order to reach consumer equilibrium, the individual must arrange the consumption of Big Macs and milkshakes so that the:
a. marginal utility of the two goods is equal for the last dollar spent on each good. b. ratio of marginal utility to price is the same for both goods for the last dollar spent on each good. c. ratio of marginal utility of milkshakes to the marginal utility of Big Macs is 1 for the last dollar spent on each good. d. price paid for the two goods is the same.