What does the Consumer Price Index (CPI) measure?
A. prices of durable goods
B. prices of nondurable goods
C. the cost of living over time
D. the cost of replacing lost items
Answer: C
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In the capital market, the rental price is what a:
A. producer pays to use a factor of production for a certain period or task. B. producer pays to gain permanent ownership of a factor of production. C. consumer pays to use labor or land services for a certain period or task. D. consumer pays to gain permanent ownership of a factor of production.
Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
a. the opportunity cost of growing oranges is higher in Florida than in Georgia. b. Georgia has a comparative advantage in producing oranges. c. Florida has a comparative advantage in producing oranges. d. total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.
What is the price of a TV in an open economy with a quota? 
A. $150 B. $100 C. $125 D. $75
The input-substitution effect associated with an increase in the wage implies that as the wage increases, a firm will substitute other inputs for the relatively expensive labor.
Answer the following statement true (T) or false (F)