Assume that the current price of a market basket of goods is $5,000 and the base year price of the same market basket is $4,000. The current price index is
A. 125.
B. 400.
C. 2500.
D. 200.
Answer: A
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A recurring theme in economics is that people
A. can increase resources by limiting their economic wants. B. have unlimited resources but limited economic wants. C. have unlimited economic wants but limited resources. D. have limited economic wants and limited resources.
Use the following data to answer the next question. The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$10,000$12,00018,00018,00026,00024,00034,00030,00042,00036,00050,00042,000If disposable income is $42,000, then saving is
A. $4,000. B. $2,000. C. $6,000. D. $0.
The unemployment rates during the last 10 years in the Eurozone was
A) constantly lower than the unemployment rate in the United States and not rising toward the U.S. unemployment rate. B) constantly lower than the unemployment rate in the United States but were rising toward the U.S. unemployment rate. C) more or less constant at 3 percent. D) generally higher than the U.S. unemployment rate. E) approximately equal to those in the United States, with some years the U.S. unemployment rate being slightly higher and in other years the U.S. unemployment rate being slightly lower.
In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because:
A. changes in trade deficits and surpluses. B. the length of the workweek has declined historically. C. the price level may change over time. D. depreciation may be greater or smaller than gross investment.