Inflation can be measured using either the GDP deflator or the consumer price index
a. True
b. False
Indicate whether the statement is true or false
True
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Crtically evaluat the following statement. "It is possible to calculate comparative advantage even when prices are not known."
What will be an ideal response?
Which of the following goods is least likely to be rivalrous in consumption?
A. a car B. a pair of shoes C. a book D. a computer E. a sunset
By the nature of consumer ________, it is reasonable to treat most of the expenditure on them as a form of saving rather than consumption, which it what it takes in permanent-income and life-cycle models to make the saving ratio ________ with rising
income. A) nondurables, rise B) services, fall C) services, rise D) durables, rise E) durables, fall
If demand for the product you make were to suddenly decline, you would expect the equilibrium price of the product to fall, which would lead to:
A. no change the VMP of each worker because product prices don't affect worker productivity. B. a decrease in the marginal productivity of each worker. C. an increase in the VMP of each worker. D. a decrease in the VMP of each worker.