In the United States, the most commonly cited measure of the price level is the consumer price index
Indicate whether the statement is true or false
TRUE
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When there is an external cost, the unregulated market
A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) minimizes public welfare.
What are the two main sources of tax revenues for state and local governments?
You have responsibility for economic policy in the country of Freedonia. Recently, the neighboring country of Sylvania has cut off all exports of oranges to Freedonia. George, who is one of your advisors, says that the best way to avoid a shortage of oranges is to take no action at all. Charles, another one of your advisors, argues that without a binding price floor, a shortage will certainly
develop. Otto, a third advisor, suggests that you should impose a binding price ceiling in order to avoid a shortage of oranges. Which of your three advisors is most likely to have studied economics? a. George b. Charles c. Otto d. Apparently, all three advisors have studied economics, but their views on positive economics are different.
Explain why the ratio of farm prices to nonfarm prices fell 60 percent between 1910-1914 and 2001.
What will be an ideal response?