Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50¢ per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75¢ per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
a. 100.
b. 115.
c. 126.
d. 130.
b
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Which of the following is true of the wage gap between the top 10% of earners and the bottom 10% of earners in the U.S. economy?
A) The wage gap has increased over time. B) The wage gap has decreased over time. C) The wage gap has remained the same over time. D) There is hardly any wage gap between the top 10% of earners and the bottom 10% of earners in the U.S. economy.
Big Pools is large swimming complex. Suppose senior citizens have a demand for entrance into Big Pools that is more than half of the adults demand for entrance and there are an equal number of senior citizens and adults. If Big Pools practices two-part pricing, to earn greater profit, Big Pools ________ adjust the membership fee to include ________.
A) should not; senior citizens B) should; only adults C) should; senior citizens D) should not; adults
Ceteris paribus, if negotiations lead to lower wages for airline employees, what will be the result in the market for air travel?
a. an increase in equilibrium price and an increase in equilibrium quantity b. an increase in equilibrium price and a decrease in equilibrium quantity c. a decrease in equilibrium price and an increase in equilibrium quantity d. a decrease in equilibrium price and a decrease in equilibrium quantity
During the course of the twentieth century, the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labor productivity?
What will be an ideal response?