The nominal price of a desk increased from $20 in 2005 to $65 in 2016. The Consumer Price Index (CPI) was 125 in 2005 and 250 in 2016. We can say that
A) the real price of a desk increased over time.
B) the real price of a desk fell over time.
C) the real price of a desk has not changed over time.
D) There is not enough information to determine the real price of a desk.
A
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In the figure above, if a pollution tax is imposed that is equal to the marginal external cost of pollution, then at the equilibrium, marginal social cost would ________ marginal benefit, and the quantity of chemical produced would be ________
A) exceed; above the efficient quantity B) exceed; below the efficient quantity C) be below; above the efficient quantity D) be below; below the efficient quantity E) equal; efficient
As price falls along a given demand curve for pretzels,
a. quantity demanded, total utility, marginal utility, and consumer surplus increase; consumer expenditure decreases b. quantity demanded, total utility, and consumer surplus increase; marginal utility and consumer surplus decrease c. quantity demanded, total utility, consumer surplus, and consumer expenditure increase; marginal utility decreases d. quantity demanded, total utility, and consumer surplus increase; marginal utility decreases; consumer expenditure might increase, decrease, or remain constant e. quantity demanded, total utility, marginal utility, consumer surplus, and consumer expenditure all increase
One of the strongest reasons that oligopolies exist is due to
A) the homogeneity of their products. B) marginal cost pricing. C) lowest cost production. D) economies of scale.
The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a
A) negligible investment. B) foreign indirect investment. C) foreign direct investment. D) portfolio investment.