______ measures the percent change in the cost of a fixed consumption bundle.
A. A fixed-weight price index
B. Substitution bias
C. Compensating variation
D. Real income
A. A fixed-weight price index
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Which of the following is an invalid argument for protection?
A) redistribution of income B) infant industry protection C) preservation of the home market D) All of the above
The Bob & Weave Company manufactures only hair extensions. In 2016 Bob & Weave manufactured 50,000 hair extensions, but sold only 32,000 hair extensions. In 2016 Bob & Weave's change in inventory was ________ hair extensions.
A. 16,000 B. 18,000 C. 32,000 D. 82,000
The costs associated with recalculating prices and printing new price lists when there is inflation are known as
A) menu costs. B) diminishing costs. C) shoe leather costs. D) chain-index costs.
If a local government collects taxes of $250,000, has $175,000 of government consumption expenditures, makes transfer payments of $75,000, and has no interest payments or investment, its budget would
A) show a surplus of $100,000. B) show a surplus of $75,000. C) be in balance with neither a surplus nor a deficit. D) show a deficit of $75,000.