The consumer price index is created by
A. calculating the cost of a "basket" of consumer goods typically bought by an American family in any year as a percentage of their cost in a base year.
B. the Congressional Budget Office.
C. averaging the price increases for all consumer goods in the GDP and adding 100.
D. dividing nominal dollar consumer expenditures by base year consumer expenditures.
A. calculating the cost of a "basket" of consumer goods typically bought by an American family in any year as a percentage of their cost in a base year.
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A public good such as a streetlight will not be provided by a private profit-seeking company because
a. the streetlight is also a merit good b. the streetlight is an exclusive and rival good c. it takes a government to maintain the streetlights, e.g., changing bulbs d. private companies can't compete with government in producing streetlights e. the benefit a person derives from having streetlights are less than the cost of installing streetlights
Markets, viewed from the perspective of the supply and demand model:
A. assume many buyers and many sellers of a standardized product. B. assume market power so that buyers and sellers bargain with one another. C. do not exist in the real-world economy. D. are approximated by markets in which a single seller determines price.
The upward slope of the supply curve reflects the:
A. principle of specialization in production. B. law of supply. C. fact that price and quantity supplied are inversely related. D. law of diminishing marginal utility.
________ U.S. president(s) who has/have held office since GATT was signed has argued for free-trade policies, yet each one has used his powers to protect various sectors of the economy.
A. Only one B. Every C. No D. Only 3