This statement is true. The Producer Price Index (PPI) is based on prices paid for supplies and inputs by producers of goods and services. The PPI in general has increase over time representing that the cost of living has increased over time.
a. Consumer Price Index
b. Product Price Index
c. Employment Cost Index
d. Employment Price Index
c. Employment Cost Index
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The exchange rate between the United States and Japan
A) is fixed so it does not change. B) consistently decreases over time. C) does not exist. D) consistently increases over time. E) fluctuates, sometimes rising and sometimes falling.
Competition among decentralized governmental units will
A) make it more difficult for citizens to satisfy their preferences with regard to the goods and services supplied by governments. B) result in wasteful duplication and inefficiency in production of governmental services. C) strengthen the incentive of governments to operate efficiently and cater to the views of citizens. D) evolve naturally because local governments will want to compete with each other.
Who benefits primarily from rent controls?
A. construction workers B. all who want to rent C. only renters who are able to get units at below-market rates D. poor people looking for low-income housing
Answer the following questions true (T) or false (F)
1. To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage. These facts suggest that a positive relationship exists between safety and gas mileage. 2. A decrease in the unemployment rate may be represented as a movement from a point inside the production possibilities frontier to a point on the frontier. 3. If a country is producing efficiently and is on the production possibilities frontier, producing more of one good would result in a movement along the frontier.