If a basket of goods costs $100 in 2015 and the price index rises by 4 percent every year, the same basket would cost _____ in 2020
a. $104
b. $100
c. $121.7
d. $200
c
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In a market with a rent ceiling set below the equilibrium rent, the producer and consumer surplus
A) both increase. B) both decrease, but generally not to zero. C) do not change. D) are eliminated. E) are both totally converted into deadweight loss.
Differentiate between an oligopoly and a monopolistic competition on the basis of the number of firms and the degree of product differentiation
What will be an ideal response?
In the consumption function, the real interest rate, consumer confidence, wealth, available consumer credit, and consumer debt are captured in the autonomous consumption term of the consumption function
Indicate whether the statement is true or false
A sandwich shop owner has the following information: P = MR = $4, ATC = $2, AVC = $1, MC = 4, and Q = 500 . From this, she can determine:
a. her profits are not being maximized. b. she has earned zero economic profits. c. she has earned economic profits of $1,000. d. she has earned economic profits of $1,500. e. she should sell fewer sandwiches.