Which of the following is an important goal of the price index?
a. to show current GDP in dollars of inflated purchasing power
b. to show current GDP in physical units of inflated purchasing power
c. to show real GDP in dollars of constant purchasing power
d. to show real GDP in physical units of constant purchasing power
c. to show real GDP in dollars of constant purchasing power
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Which of the following is NOT an assumption of perfect competition?
A) many firms B) many buyers C) restrictions on entry into the market D) each firm sells an identical product
An economic justification for government providing public goods and services is that many people can benefit regardless of whether they pay or not
a. True b. False Indicate whether the statement is true or false
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. What is the likely effect of the change in Argentina's external wealth on Argentine aggregate demand as a result of the devaluation of the peso (from P1 = $US1 to P3 = $US1)?
A) It will increase Argentine aggregate demand. B) It will decrease Argentine aggregate demand. C) It will neither increase nor decrease Argentine aggregate demand. D) It will first increase, then decrease Argentine aggregate demand.
Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn Total Utilityfrom Multiplex Tickets Total Utilityfrom Video Rentals Total Utilityfrom Popcorn 1 movie (30 utils) 1 video (14 utils) 1 bag (8 utils) 2 movies (54 utils) 2 videos (24 utils) 2 bags (13 utils) 3 movies (72 utils) 3 videos (30 utils) 3 bags (15 utils) 4 movies (84 utils) 4 videos (32 utils) 4 bags (16 utils) In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. In the consumer equilibrium, what is the marginal utility per dollar for each of the three goods?
A. 5 utils per dollar. B. 9 utils per dollar. C. 13 utils per dollar. D. 22 utils per dollar.