When the price of a good decreases more slowly than an index of average prices decreases, the good's relative price
A. Has risen while its actual price has fallen.
B. And its actual price has fallen.
C. Has fallen while its actual price has risen.
D. And its actual price has risen.
Answer: A
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What has happened to health care spending and the quality of health care services in the United States over the past 50 years?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. If one city has a higher CPI than another city, the city with the higher CPI must have a higher cost of living. 2. COLA is a form of indexation. 3. Only wages or income can be indexed to the CPI. 4. Indexation is a good means of reducing inflation. 5. The value or purchasing power of the dollar can be obtained by dividing $1 by the CPI.
Over time, which of the following will most likely result from a depreciation in the exchange rate of the dollar?
a. Inflation will decline. b. Foreign goods will cost Americans less, and therefore, the imports of Americans will rise. c. U.S. goods exported abroad will cost less in foreign countries, so foreigners will buy more of them. d. U.S. goods exported abroad will cost more in foreign countries, so foreigners will buy fewer of them.
Whether a tax is levied on sellers or buyers, buyers and sellers usually share the burden of taxes
a. True b. False Indicate whether the statement is true or false