Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $58 . The value of the CPI in 2016 was
a. 106.0.
b. 104.0.
c. 111.5.
d. 116.0.
c
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Consumers don't care which supplier they buy from in a perfectly competitive market because:
A) the outputs of the firms in a perfectly competitive market are all the same. B) the consumers have no choice regarding who they buy from. C) price is always low enough that the choice of supplier doesn't matter. D) all of the above.
Under a negative income tax program, if a minimum income is set at $16,000 for a family of four and the tax rate is 25%, a family earning $8,000 would have an after tax income of
a. $16,000 b. $8,000 c. $22,000 d. $6,000 e. $12,000
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P.If this economy is open to trade, and the world price of a car is $6,000, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 8,000; 14,000 B. 12,000; 8,000 C. 12,000; 10,000 D. 14,000; 8,000
The opportunity cost of going to an outdoor music festival is
A) the enjoyment you receive from going to the festival. B) the value of the time spent at the festival. C) equal to the highest value of an alternative use of the time and money spent on the festival. D) zero because there are no overhead costs for an outdoor festival. E) the cost of the festival ticket only.