The value of the CPI for the reference base period is always
A) 100.
B) 0.
C) 1.
D) 50.
E) None of the above, because the value of the CPI is not always the same for all reference base periods.
A
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All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:
A. a lower opportunity cost of driving farther to work. B. a higher opportunity cost of taking the day off work. C. the same opportunity cost of spending time on leisure activities. D. a higher opportunity cost of working an additional hour.
Refer to the figure at right. Medicare subsidies have increased the price of medical services to Upper P Subscript s. Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?
A. The amount of medical services provided has remained unchanged as a result of the subsidy. B. The amount of medical services provided has increased from Upper Q 0 to Upper Q Subscript Upper M as a result of the subsidy. C. The amount of medical services provided has increased from Upper Q Subscript d to Upper Q Subscript Upper M as a result of the subsidy. D. The amount of medical services provided has decreased from Upper Q 0 to Upper Q Subscript d as a result of the subsidy.
The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the
A. the less an additional unit of capital adds to production. B. less is produced. C. the more an additional unit of capital adds to production. D. less production is wasted.
Refer to the graph below.
The graph indicates that as more eggs are produced, the marginal opportunity cost of:
A. eggs increases while the marginal opportunity cost of rye decreases. B. eggs decreases while the marginal opportunity cost of rye remains constant. C. eggs increases while the marginal opportunity cost of rye remains constant. D. both eggs and rye increases.