The CPI for a country in Year 1 was 129 and in Year 2, it was 133. The inflation rate of the country between the two years is approximately ________.
A) 3.1 percent
B) 4 percent
C) 2.2 percent
D) 6 percent
Answer: A) 3.1 percent
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What is the ratio that defines labor productivity?
A) (Y/N) B) (Y/Q) C) (Y/A) D) (Y/K)
If there is currently a recessionary gap: a. The price level will tend to rise. b. Real output will tend to fall
c. Both a. and b. will occur. d. None of the above will occur.
A homeowner’s roof is damaged during a hail storm, so the homeowner files a claim with his insurance company. The roof repair will cost $1,000. According to the insurance policy, the insurance company must pay 70% of the repair cost, and the homeowner must pay 30%. Which term describes this method of cost-sharing?
a. Copayment b. Coinsurance c. Deductible d. Fee-for-service
Suppose in a certain city the demand for low-cost housing can be characterized by the equation P = 500 - 2Q, where Q is housing measured in square feet. Further, suppose that supply is characterized by the equation: P = 25 + 3Q. Suppose that the government feels that the grant is not enough and, in addition, imposes a price ceiling of $270. What will happen to consumer surplus? What are the drawbacks?
What will be an ideal response?