From 2015 to 2016, the overall price level rose from 200 to 220. Over this same period, tuition rates at the local community college rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation?
a) Tuition rates increased at the same rate as inflation.
b) Tuition rates increased at a slower rate than inflation.
c) Tuition rates increased at a faster rate than inflation.
d) Tuition rates and inflation cannot be compared with the numbers given.
Ans: c) Tuition rates increased at a faster rate than inflation.
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For the CPI to provide an accurate measure of the prices paid by urban consumers, it is necessary to
A) have a market basket that is consistent and corresponds to what households actually purchase. B) make certain that the incomes of the consumers surveyed do not change because such a change would affect the market basket of the goods and services they buy. C) change the market basket each month to reflect the changes that consumers make. D) assign equal weights to all the goods and services included in the market basket surveyed so that nothing is over-weighted. E) have prices stated in dollars so consumers can compare what they spend.
The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?
What will be an ideal response?
Which of the following forces us to choose among alternatives?
a. Value b. Scarcity c. Rarity d. Market mechanism
If the price of a 32 GB memory card decreases from $25 to $20, the percentage change is:
A. -20 %. B. -33 %. C. -50 %. D. -60 %.