Explain how the CPI is constructed
What will be an ideal response?
The Bureau of Labor statistics surveys 14,000 households to determine their spending habits and to construct a listing or market basket of these goods. The survey is also used to determine the importance of the items in the consumer's budget. Each month the BLS collects the prices of the goods in the market basket from 23,000 stores. A weighted average is taken of those prices, with the more important items receiving higher weights. A base year is chosen and the CPI is set to 100 in the base year. In every other year, the CPI is calculated as the ratio of the cost of the market basket in that year, divided by the cost of the market basket in the base year, times 100.
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Define marginal cost. Is it different from the concept of willingness to accept?
What will be an ideal response?
Why is NAFTA controversial? Briefly describe both sides of this controversy
What will be an ideal response?
Suppose that the share of population employed in Country B is 50 percent, and that Countries B and C have the same real GDP per capita. Based on the information in the table, what share of Country C's population must be employed? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. 20.0 percent B. 40.0 percent C. 50.0 percent D. 5.0 percent
Which statement is the most accurate?
A. When we talk about big business in the U.S., we're talking about oligopoly. B. All oligopolists are very large firms. C. Oligopolists produce at the minimum points of their average total cost curves. D. It is impossible to lose money under oligopoly.