When the price of, say, a package of rice changes, what must the BLS do next?
A) immediately incorporate the new price into the CPI
B) determine if the new price is consistent with other price changes for the period
C) determine if the size, quality, weight, or packing of the rice has changed and adjust the price accordingly
D) ignore the price change
E) immediately incorporate the new price into the CPI only if the price has fallen
C
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A decline in domestic output would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Which of the following is not one of the three key services provided by the financial system to savers and borrowers?
A) risk sharing B) credit counseling C) liquidity D) information
In the 1970s, the government placed price ceilings on gasoline prices. A shortage of gasoline occurred, and long lines formed at the pumps. Some gas stations required that in addition to paying the price on the pump you had to buy a blank will
The action of having to purchase the will in order to purchase gas is known as A) a surplus. B) a price support. C) the price system. D) a black market.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker bought and sold at the equilibrium price, what is his profit
a. $1 b. $2.5 c. $3 d. $0