The consumer price index (CPI) is computed as the ratio of nominal GDP to real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob will buy theft insurance to cover the full $100
A) as long as it does not cost more than $25. B) as long as it does not cost more than $50. C) as long as it does not cost more than $70. D) at any price.
If the price of potato chips increases, other things constant, demand for potato-chip dip will:
a. not change; only quantity demanded will change. b. increase, because the goods are substitutes. c. decrease, because the goods are substitutes. d. decrease, because the goods are complements. e. increase, because the goods are complements.
Exhibit 10-1 Aggregate supply curve
In Exhibit 10-1, there are plenty of idle resources and no upward pressure on prices in:
A. the segment labeled ab. B. the segment labeled bc. C. the segment labeled cd. D. both segment bc and segment cd.
According to Thomas Robert Malthus, the wage rate would be depressed to the subsistence level because of
A. the power of monopolies. B. the desire of capitalists to exploit the working class. C. the natural tendency of population to grow more rapidly than the production of food. D. the long-run downward trend in investment.