If the consumer price index (CPI) at the end of year one was 100 and was 108 at the end of year two, the inflation rate during year two was
a. zero; the CPI of 100 indicates that prices were stable.
b. 8 percent.
c. 5 percent.
d. 108 percent.
B
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Which of the following is a primary function of money?
A) to serve as a unit of account B) to serve as an encouragement to work C) to reduce the burden of excessive imports D) to raise funds for the government
The process by which a legislator votes in favor of the legislation of other lawmakers in order to gain support for her own legislation is known as: a. pork barrel legislation. b. logrolling
c. the median vote model. d. none of the above
In a long-run perfectly competitive equilibrium,
a. the typical firm will earn an economic profit b. price exceeds marginal cost c. barriers to entry are established by entrenched firms d. the typical firm will earn a normal profit e. marginal cost exceeds average cost
A disadvantage of a market economy is:
a. basic services for all citizens are not provided b. there is great motivation to create new goods and services c. the economy can change direction quickly and drastically d. citizens have the freedom to choose their employers