The current cost of a market basket of goods is $800 . The cost of the same basket of goods in the base year was $1,000 . The current price index is:
a. 120.
b. 100.
c. 80
d. -20.
c
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Unplanned inventories increase when
A) aggregate planned expenditure is less than GDP. B) actual aggregate expenditure is greater than aggregate planned expenditure. C) actual aggregate expenditure is equal to GDP. D) actual aggregate expenditure is less than GDP. E) real GDP is less than aggregate planned expenditure.
Consider the hypothetical supply and demand of Kidneys.
Initially, Kidney exchanges are regulated to donations only. This means kidneys can only be exchanged at a price of zero. What is the deadweight loss from this restriction?
A. $0
B. $825,000
C. $1,350,000
D. $1200
If a macroeconomist aggregates many markets into one, then
a. individual market differences are eliminated. b. one must not confuse ravioli and hot dogs. c. she is performing a meaningless exercise. d. differences between products must still be noted.
If the firm in the diagram lowers price from P 1 to P 2 , it will:
A. lose P 1 P 2 ba in revenue from the price cut but increase revenue by Q 1 bcQ 2 from the
increase in sales.
B. lose P 1 P 2 ca in revenue from the price cut but increase revenue by Q 1 acQ 2 from the
increase in sales.
C. incur a decline in total revenue because it is operating on the elastic segment of the
demand curve.
D. incur an increase in total revenue because it is operating on the inelastic segment of the
demand curve.