Refer to the data. If year 3 is chosen as the base year, the price index for year 1 is:
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data.
A. 140.
B. 40.
C. 167.
D. 60.
D. 60.
You might also like to view...
What is meant by decreasing returns to scale?
What will be an ideal response?
The principal-agent problem arises because of
a. natural selection b. diminishing marginal returns c. hidden actions d. the winner's curse e. hidden characteristics
According to the theory of _____, people look at past experiences and gradually adapt their beliefs and behavior as circumstances change
a. adaptive expectations b. rational expectations c. sticky wages d. absolute advantage
If the absolute price elasticity of demand is 0.2, a 5 percent decrease in the price will cause
A) the quantity demanded to increase by 1 percent. B) the quantity demanded to increase by 10 percent. C) the quantity demanded to increase by 0.25 percent. D) the quantity demanded to increase by 2.5 percent.