Related to the Economics in Practice on p. 455: The Consumer Price Index in the United States was 215.3 in 2008 and 214.5 in 2009. If a retiree received a monthly pension check of $3,200.00 in 2008 and his pension is tied to the CPI, how much would his monthly pension check be in 2009?
A. $3174.40
B. $3,188.11
C. $3,200.00
D. $3,214.50
Answer: B
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If employers are provided a subsidy of $1 per hour for hiring workers, ________
A) the equilibrium real wage will decrease B) labor demand will decrease C) the equilibrium employment will increase D) labor supply will increase
Explain why the average cost curve for the long run differs from that for the short run
The market overproduces goods that have external costs because producers:
A.) Do not experience the full costs of production for these goods. B.) Must bear higher costs than society experiences for these goods. C.) Expect the government to subsidize these goods. D.) Cannot compete with the government in producing these goods.
Kick is looking to play for a U.S. MLS team. D.C. United is offering him $50 million for his first year. The Chicago Fire is offering him $25 million his first year and $10 million per year for the following three years. The market interest rate is 5 percent. Which offer is the better deal in terms of present value in millions?
A. D.C. United, because it will pay him $50 million compared with $48.1 million from Chicago Fire B. D.C. United, because it will pay him $50 million compared with $46.8 million from Chicago Fire C. Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United D. Chicago Fire, because it will pay him $55 million compared with $50 million from D.C. United