Using the CPI measure of the price level, which is 100 in the base year of 2007, calculate the annual inflation rates for (a) 2013, when the index is 103.7. (b) 2014, when the index is 105.5. (c) 2015, when the index is 107.7
What will be an ideal response?
(a) Inflation in 2013 = (103.7 - 100 )/100 × 100% = 3.7%.
(b) Inflation in 2014 = (105.5 - 103.7 )/100 × 100% = 1.7%.
(c) Inflation in 2015 = (107.7 - 105.5 )/100 × 100% = 2.1%.
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A monopsonist purchaser of labor that could negotiate a different wage for each worker could
A) purchase less labor than a regular monopsonist. B) purchase more labor than a regular monopsonist. C) rotate the marginal expenditure curve to the left. D) shift the marginal expenditure curve to the left.
M1 includes
a. currency. b. demand deposits. c. traveler's checks. d. All of the above are correct.
Figure 4-6
The deadweight loss of the tax illustrated in is given by the area
a.
ABEH.
b.
DFE.
c.
EKG.
d.
EFG.
When Mr. Peabody decides on the companies to which he will donate his time and money, a ________ issue is being addressed
A) microeconomic B) normative economic C) positive economic D) macroeconomic