When the cost of the CPI market basket increases from one year to the next, we know that
A) on the average, current prices are less than past year prices.
B) the quantities of the goods and services contained in the CPI market basket have increased on the average.
C) the prices of the goods and services contained in the CPI market basket have increased on the average.
D) on the average, current prices are below base year prices.
E) either the quantities of the goods and services contained in the CPI market basket have increased on the average and/or the prices of the goods and services contained in the CPI market basket have increased on the average.
C
You might also like to view...
Refer to Figure 14.1. Other things equal, an increase in the inflation rate is best represented as a movement from
A) point A to point B. B) point C to point A. C) point C to point B. D) point B to point C.
Assume, for Canada, that the domestic price of steel without international trade is higher than the world price of steel. This suggests that with trade,
a. Canada has a comparative advantage in the production of steel over other countries and Canada will import steel. b. Canada has a comparative advantage in the production of steel over other countries and Canada will export steel. c. other countries have a comparative advantage over Canada in the production of steel and Canada will import steel. d. other countries have a comparative advantage over Canada in the production of steel and Canada will export steel.
A consequence of the economic problem of scarcity is that:
A. The production of goods and services must be controlled by the government.
B. Choices have to be made about how resources are used.
C. The production possibilities curve is bowed outward.
D. There is never too much of any good or service produced.
The financial account in the U.S. balance of payments includes
A. everything that is included in the current account. B. payments of pensions to U.S. citizens who now live in foreign countries. C. new U.S. investments in foreign countries. D. profits that Nissan of America sends back to Japan.