Which of the following statements is true?
A) Base year prices are necessarily higher than current year prices.
B) The CPI in the base year is always 100.
C) If the CPI is 112 in year 1 and 123 in year 2, prices have risen by approximately 9.8 percent between the two years.
D) b and c
E) a, b, and c
D
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Explain why the transactions costs involved with trying to acquire 100 acres of land from one landowner are probably going to be less than the transactions costs involved with trying to acquire 10 acres of land from each of 10 different landowners
What will be an ideal response?
Over the past 20 years, the annual revenue received by the U.S. federal government from taxes has averaged roughly ________ of GDP, and the annual revenue received from seigniorage has averaged ________ of GDP
A) 50%; 5% B) 7%; more than 36% C) 18%; less than 1% D) 40%; 10%
What would be the most likely reason for a government to introduce a tax decrease?
a. impeding a monopoly b. reducing unemployment c. lowering interest rates d. overcoming inflation
In long-run equilibrium, compared to a perfectly competitive market, a monopolistically competitive industry produces a ________ level of output and charges a ________ price
A) higher; lower B) lower; lower C) lower; higher D) higher; higher