In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 10 hot dogs and 6 hamburgers. A hot dog cost $3 in 2006 and $5.40 in 2007 . A hamburger cost $5 in 2006 and $6 in 2007 . Which of the following statements is correct?
a. When 2006 is chosen as the base year, the consumer price index is 90 in 2007.
b. When 2006 is chosen as the base year, the inflation rate is 150 percent in 2007.
c. When 2007 is chosen as the base year, the consumer price index is 100 in 2006.
d. When 2007 is chosen as the base year, the inflation rate is 50 percent in 2007.
d
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The demand for Chocolate Chip Cookie Dough ice cream is likely quite elastic because
a. ice cream must be eaten quickly. b. this particular flavor of ice cream is viewed as a necessity by many ice-cream lovers. c. the market is broadly defined. d. other flavors of ice cream are good substitutes for this particular flavor.
Measured as a share of GDP, federal spending during 2001-2010
a. increased more rapidly than during the 1990s. b. increased less rapidly than during the 1990s. c. declined after increasing rapidly during the 1990s. d. was virtually unchanged during the decade.
Which of the following would not address the moral hazard problem?
A. Allow the government to take over the policy-making decisions of the Federal Reserve B. Separate banks from other financial institutions C. Design systems so that necessary financial transactions stayed within regulated banks D. Establish strict regulations of the banks
The question of legality in daily fantasy comes down to
A. whether the points system is transparent B. how big the bet is. C. whether it is a game of skill or chance. It is usually legal if it is a game of skill. D. whether it is a game of skill or chance. It is usually illegal if it is a game of skill.