A price index is the
A) cost of a market basket of goods today.
B) cost of a market basket of goods and services a year ago expressed as a percentage of the cost of the same market basket today.
C) cost of a market basket of goods and services today expressed as a percentage of the cost of the same market basket during a base year.
D) year that is chosen as the point of reference for comparison of prices in other years.
C
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Suppose that a dollar buys 120 yen. If a VCR sells for 18,600 yen in Japan, the price of the VCR in dollars is ________
A) $186.00 B) $223.20 C) $120.00 D) $155.00
According to the text, grass mowing, T-shirt production, and potato farming are examples of firms
a. that regularly advertise to increase market share b. whose markets are highly seasonal c. with high production differentiation d. with high brand loyalty e. with no barriers to entry
Which one of the following states a central element of the economic way of thinking?
What will be an ideal response?
Which of the following events will increase the domestic real interest rate in an open economy?
A. An increase in net capital inflow B. An increase in domestic saving C. A decrease in the domestic saving D. A decrease in the perceived riskiness of investing in the domestic economy