Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2015 the CPI was 226. What does this "226" mean?
A) What cost $100 in 1983 on average cost 226 times as much in 2015.
B) What cost $100 in 1983 on average cost $226 more in 2015.
C) What cost $100 in 1983 on average cost 100/226 (or 0.44 ) times as much in 2015 (that is, it will cost $22 in 2015).
D) What cost $100 in 1983 on average cost $126 more in 2015.
D
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Refer to Figure 4.1. Suppose Alvin chooses Bottom, while Simon chooses Up, and Theodore chooses Right. Alvin's payoff will be
A) 2. B) 6. C) 8. D) 16.
When the official dollar price of a foreign currency is set below its equilibrium level, the dollar
A) has been appreciated. B) is overvalued. C) is undervalued. D) is devalued. E) is revalued.
If government has no debt initially but then has annual revenues of $1.5 billion for 10 years and annual expenditures of $1.6 billion for 10 years, then the government has a:
A. deficit of $100 million and a debt of $1 billion per year. B. deficit of $100 million per year and a debt of $1 billion. C. surplus of $100 million per year and a debt of $1 billion. D. surplus of $100 million and a debt of $1 billion per year.
A bundle:
A. is when a store sells goods at a discounted price. B. describes the amount of people that choose a particular combination of goods. C. is a curve describing different combinations of goods and services an individual could choose to consume. D. is a specific combination of goods and services an individual could consume.