Suppose the CPI has been overstating the increase in the cost of living by 1% for 25 years, the total impact of that 25 years later is
a. less than 25%
b. exactly 25%
c. negligible since it is only 1% per year
d. more than 25%
e. 24%
D
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The supply of real GDP is a function of
A) the total expenditures of consumers, investors and government. B) the sum of wages, salaries, corporate profits, rents and interest. C) only the state of technology. D) the quantities of labor, capital and the state of technology.
The market value of all final goods and services in an economy produced by resources owned by people of that economy, regardless of where the resources are located, is
a. gross domestic product b. gross national product c. net national product d. national income e. gross private domestic investment
A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helping uneaten. Why?
A) Her marginal value of an additional bite of food has fallen to zero. B) Her marginal value of additional food has fallen below $4 ($12 divided by 3 servings). C) Her marginal value of brunch has fallen below $12. D) The total value she places on brunch today exactly equals $12.
If the demand for umbrellas is price inelastic,
A. the percentage change in quantity demanded is greater than the percentage change in price. B. changes in price do not affect the number of umbrellas demanded. C. the percentage change in price is less than the percentage change in quantity demanded. D. if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease. E. none of the above