If this year's price level is 126 and last year's price level was 120, the inflation rate is ________
A) 0.95 percent a year
B) 5 percent a year
C) 6 percent a year
D) 1.05 percent a year
B
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A chemical factory releases its byproducts in a nearby river, which harms aquatic flora and fauna. This is an example of a ________
A) free-rider problem B) negative externality C) pecuniary externality D) positive externality
Increasing scarcity of a resource causes new supplies to become more and more costly
a. True b. False Indicate whether the statement is true or false
Figure 9.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% of its customers are high-cost type. If the insurance companies set the price equal to their average cost per customer, what percent of customers who buy the insurance are actually low-cost customers?
A. 20% B. more than 20% but less than 50% C. more than 50% D. less than 20%
Because consumption is largely determined by ________ income, consumption is ________ equally distributed than current income.
a. permanent, more b. permanent, less c. transitory, less d. transitory, more