A period of time against which costs of the market basket in other periods will be compared in computing a price index is called
A. the inflation period.
B. the market basket.
C. the adjustment period.
D. the base period.
Ans: D. the base period.
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If the central bank of Orangeland pursues an expansionary monetary policy, ________
A) its labor supply will fall B) the price level in Orangeland will fall C) the demand for labor in the economy will increase D) the interest rate in Orangeland will rise
Of the following cancer patients, who is speculating?
A) The one who follows their doctor's advice and elects chemotherapy B) The one who goes against their doctor's advice and rejects chemotherapy C) The one who gets a second opinion, but not a third opinion D) All of the above. E) None of the above.
If an epidemic hits a Malthusian economy, the long-term consequence is
A) an increase in the standard of living. B) a reduction in the standard of living. C) no change in the standard of living. D) dependent on the population growth rate.
The real-income effect shows that
A) a decrease in the price of a good increases the purchasing power of the consumer's income. B) if the consumer's income rises, he or she buys more of inferior goods and less of normal goods. C) if a good is inferior, a decrease in the purchasing power of income results in less of the good being consumed. D) when the price of a good rises, consumers are able to buy more of other goods because of the increase in the purchasing power of income.