Using the above table, the following is the output of a two-product economy. The price index in this economy in Year 2, assuming Year 1 is the base year, is
A. 113.0.
B. 107.1.
C. 106.7.
D. 88.5.
Answer: A
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What is the effect on the equilibrium price and equilibrium quantity of theater tickets if the price of an orchestra ticket increases and the wage rate paid to actors decreases? The equilibrium price of a theater ticket _____ and the equilibrium quantity _____.
A. always falls ; increases B. always falls; decreases C. rises, falls, or remains the same; decreases D. does not change; does not change E. rises, falls, or remains the same; increases
If fewer cigarettes are consumed with symmetric information than asymmetric information, it follows that
A. with asymmetric information the demand for cigarettes is lower than with symmetric information. B. with symmetric information the demand for cigarettes is lower than with asymmetric information. C. the demand for cigarettes is the same with or without asymmetric information. D. there are more free riders with asymmetric information than symmetric information. E. There is not enough information to answer the question.
Full employment to the classical school means that all workers
a. in the labor market are employed b. at any given wage rate are or will be employed c. who work at the equilibrium wage rate would not have been willing to work for less or more d. who are willing to work at the equilibrium wage rate are employed e. who are in the labor force are employed all the time
Refer to Figure 8.1, which shows a family of average cost curves. The average variable cost at a given level of output is represented by:
A. the vertical distance between Curve 1 and Curve 3 at a given level of output. B. the vertical distance between Curve 1 and Curve 2 at a given level of output. C. the vertical sum of Curve 1 and Curve 3 at a given level of output. D. the vertical sum of Curve 1 and Curve 2 at a given level of output.