The following table shows the price of a specific stereo receiver for a five-year period. Using Year 1 as the base year, calculate the price index for each year
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Which of the following statements is FALSE regarding the definition of poverty?
A) A threshold income level is used to define poverty. B) Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index. C) Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita. D) Poverty cannot be defined in relative terms.
A drop in the price of oil will result in
A. an increase in the demand for oil. B. a decrease in the demand for oil. C. an increase in the quantity of oil demanded. D. a decrease in the quantity of oil demanded.
The short-term fluctuations experienced in the economy due to changes in levels of economic activity are called
A. the natural rate of unemployment. B. a recession. C. the business cycle. D. an expansion.
Use the above table. What will the price be when external costs are internalized with a tax?
A) $14 B) $13 C) $12.20 D) $1.80