If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the inflation rate from 2006 to 2007 is
A. (100-83.3)/100*100%=16.7%.
B. (100-100)/100*100%=0%.
C. (120-100)/100*100%=20%.
D. unknown given this data.
Answer: C
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Refer to the scenario above. If the number of bidders increases to 65, Molly's optimal bid for the product would be ________, and her consumer surplus would be ________
A) $836.92; $13.08 B) $831.11; $18.89 C) $765.5; $25 D) $750; $28.5
Contracts can avoid transaction costs
Indicate whether the statement is true or false
Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is:
a. the natural rate of unemployment. b. full employment. c. cyclical unemployment. d. frictional unemployment. e. structural unemployment.
For those workers who are given fringe benefits such as health insurance and pensions, the additional income this amounts to over and above the average hourly wage can be as much as (for some workers)
a. 10-12% b. 30-40% c. 51-62%% d. 70% or more