Use the following table, which lists output quantities and prices for the only three goods in the economy, to answer the next question. The base year is 2007.YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.50100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250The Consumer Price Index for the year 2008 is
A. 180.5.
B. 126.5.
C. 171.5.
D. 147.5.
Answer: C
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Rational choice requires that opportunity cost be
A. ignored in making a decision. B. considered for individual choices but not for societal choices. C. computed but not actually used in making a decision. D. considered as part of making a decision. E. used as the sole decision criterion.
What is meant by the skill-bias technological explanation of increasing inequality?
A. Inequality has increased because technological advances over the last 40 years have complemented the productivity of unskilled labor relative to foreign labor. B. Inequality has increased because technological advances have not kept pace with the demand for education. C. There has been increasing inequality over the last 40 years among high-skilled workers. D. There has been increasing inequality over the last 40 years because unskilled workers use no technology. E. Inequality has increased because technological advances over the last 40 years have complemented the productivity of skilled labor relative to unskilled labor.
The magnification of small changes in spending into larger changes in output and income is produced by:
a. The average propensity to consume b. The multiplier effect c. The average propensity to save d. Saving
If Crystal gets 140 utils from eating one yogurt, 145 utils from eating two yogurts, and 148 utils from eating three yogurts, then Crystal's total utility is:
A. increasing. B. decreasing. C. decreasing at decreasing rate. D. constant.