Suppose that the total expenditures for a typical household in 2015 equaled $5,500 per month, while the cost of purchasing exactly the same items in 2017 was $6,875. If 2015 is the base year, the CPI for the year 2017 equals:
A. 1.20
B. 1.25
C. 1.00
D. 0.80
Answer: B
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The marginal productivity theory of income states that a person's total income is determined by
A) how much the individual works. B) how profitable the firm the individual works for is. C) how much the individual has inherited. D) the amount and productivity of factors of production the individual owns.
The opportunity cost of government purchases is greater when financed by borrowing than when financed by taxes.
Answer the following statement true (T) or false (F)
In a competitive market, the demand and supply curves are Q = 12 - P and Q = 5P, respectively. If output is fixed at Q = 11, what is the amount of the resulting deadweight loss?
A) 0 B) 0.6 C) 11.4 D) 15
Interest payments by the government as a share of GDP
A. increased sharply in the 1940s and 1980s. B. increased in the 2000s and 2010s, but were fairly steady before that. C. have steadily increased from the 1940s to the 2010s. D. remained fairly steady from the 1940s to the 2010s.