If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals
A) 225.
B) 250.
C) 300.
D) 450.
A
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If nominal wages are downwardly rigid, a countercyclical policy during a recession leads to ________
A) a fall in consumption B) an increase in tax rates C) an increase in employment D) a fall in investment
The long-run supply curve is upward sloping in a(n)
a. decreasing-cost industry b. increasing-cost industry c. constant-cost industry d. labor-intensive industry e. capital-intensive industry
A toll collected from each car traveling during rush hour on a congested road is an effective correction to the Tragedy of the Commons for all of the following reasons except the toll provides an incentive for commuters to
a. drive at times other than rush hour. b. use public transit rather than driving. c. drive more fuel-efficient cars. d. car-pool.
When a firm experiences increasing marginal returns, the marginal cost of output also increases. Similarly, when the firm experiences decreasing marginal returns, the marginal cost of output also decreases
Indicate whether the statement is true or false