When we are calculating the consumer price index and the inflation rate for a certain year,
a. the value of the consumer price index may depend on the choice of a base year, but the inflation rate does not depend on the choice of a base year.
b. the inflation rate may depend on the choice of a base year, but the value of the consumer price index does not depend on the choice of a base year.
c. both the value of the consumer price index and the inflation rate may depend on the choice of a base year.
d. neither the value of the consumer price index nor the inflation rate depends on the choice of a base year.
a
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When the real quantity of money supplied equals the real quantity of money demanded, there is said to be
A) goods market equilibrium. B) asset market equilibrium. C) monetary neutrality. D) money illusion.
In a perfectly competitive market, all of the following are true EXCEPT:
A. firms take prices as given. B. firms produce the quantity for which marginal cost equals price. C. firms can increase profits by charging a price higher than the market price. D. buyers take prices as given.
The demand for Dell laptops is more price elastic than the demand for laptops as whole. This is best explained by
a. There are fewer substitutes for Dell laptops than for laptops as whole b. There are more substitutes for Dell laptops than for laptops as whole c. Dell laptops are luxurious goods d. Dell laptops are a necessity
AZT is a drug that inhibits the reproduction of the AIDS virus, thus preventing the full development of the disease. The drug, which is sold in an unregulated market, is very expensive and many AIDS patients who can't afford it die from the disease. This case provides ammunition to critics of the market system on the basis of its
a. fairness. b. externalities. c. cost disease in services. d. inefficiency.