Exhibit 7-1 Consumer Price Index
Year
ConsumerPrice Index
1
100
2
110
3
115
4
120
5
125
As shown in Exhibit 7-1, the rate of inflation for Year 5 is:
A. 4.2 percent
B. 5 percent.
C. 20 percent.
D. 25 percent.
Answer: A
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Refer to Table 21.1. What is the mean income on Richlandia?
A) $40,000 B) $69,000 C) $75,000 D) $85,000
In the figure above, when the price rises from $3 to $4, the price elasticity of demand is
A) 1.4. B) 2. C) 0.71. D) 0.4. E) 1.
"Banana republics" refers to:
A) nations that do not participate in free trade. B) nations that are net importers. C) nations that specialize in the production of only one good. D) nations that produce only agricultural products.
Why do Americans want to buy pounds?
a. To buy goods and services from British firms and to buy British assets. b. To purchase a British soccer shirt in New York. c. To purchase stock in British companies on the New York Stock Exchange. d. To purchase Canadian bonds. e. To buy goods and services only.