The price of a gallon of gasoline was $2.01 in May 2004 compared to 39 cents in 1973 . However, the Consumer Price Index was 44.4 in 1973 compared to 189.1 in May 2004 (1980 - 1984 = 100). In terms of the purchasing power of the dollar in 2004, the 1973 price of gasoline was
a. $0.39.
b. $0.44.
c. $1.66.
d. $2.15.
C
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In an open economy, the government purchases multiplier will be larger the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import. C) smaller the marginal income tax rate. D) All of the above are correct.
Intellectual property rights provided by patent systems typically ________
A) provide tax incentives to encourage research and development B) allow for the depreciation of capital C) compensate the government for building infrastructure D) last about twenty years
Possible sources of an upward bias in the CPI include the
a. quantity adjustment bias. b. substitution bias. c. new products bias. d. Both b and c e. All of the above
Which of the following is not considered a factor that contributes to economic growth?
a. increased labor productivity b. increased infant mortality rates c. technological advances d. the migration of resources from areas of low productivity to areas of high productivity