Suppose a market basket of goods and services costs $400 in the base year and the consumer price index (CPI) is currently 125 . This indicates the price of the market basket of goods is now:
a. $275.
b. $425.
c. $500.
d. $525.
c
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In a certain economy, when income is $400, consumer spending is $325 . The value of the multiplier for this economy is 3.33 . It follows that, when income is $450, consumer spending is
a. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand. b. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $166.50 increase in aggregate demand. c. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand. d. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $166.25 increase in aggregate demand.
The Social Security System includes three separate programs. They are
A. Old Age and Survivors Insurance, Medicare, and Unemployment Compensation. B. Disability Insurance, Medicare, and Temporary Assistance to Needy Families (TANF). C. Old Age and Survivors Insurance, Disability Insurance, and Health Insurance. D. Old Age and Survivors Insurance, Medicare, and Medicaid.
For a monopoly, marginal revenue for all units greater than 1 is always:
A. less than price because of the price effect. B. more than price because of the price effect. C. more than price because of the quantity effect. D. less than price because of the quantity effect.
Which of the following statements is true?
A) If the opportunity costs differ between two countries, there is no opportunity for mutually advantageous trade. B) International trade leads countries to specialize in the production of those goods for which they have an absolute, rather than a comparative, advantage. C) Free international trade can increase the availability of all goods and services in the countries that participate in trade. D) The potential costs of free trade generally outweigh the benefits.