The consumer price index is used to
a. convert nominal GDP into real GDP.
b. turn dollar figures into meaningful measures of purchasing power.
c. characterize the types of goods and services that consumers purchase.
d. measure the quantity of goods and services that the economy produces.
b
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Refer to the table below. Suppose the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5 and Big Oaks is producing the profit-maximizing quantity of lumber and paper products. If the profit from each unit of lumber increases from $5 to $6 and the profit for each unit of paper products does not change, to maximize profit, Big Oaks should produce a ________
proportion of lumber and produce ________ units of paper products and lumber.
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) smaller; more
B) smaller; less
C) greater; less
D) greater; more
Which of the following will be reduced during an expansionary monetary policy?
a. the return to saving b. spending c. borrowing d. money supply
In 2012, the United States' balance on goods was about:
A. -$735 billion. B. +$630 billion. C. -$540 billion. D. +$199 billion.
Taxes levied on broad bases tend to distort choice ________ and impose ________ excess burden than taxes on more sharply defined bases.
A. less; larger B. more; larger C. more; smaller D. less; smaller