A price index is designed to measure
a. changes in the general level of employment across time periods.
b. changes in the quantity of output produced across time periods.
c. the market value of output produced during the current period with the value of output produced during an earlier time period.
d. the cost of buying a market basket of goods at a point in time relative to the cost of buying the same market basket during an earlier time period.
D
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A household that expects a decrease in disposable income in the future will _____
a. increase its current consumption spending b. decrease its current consumption spending c. maintain its current consumption spending d. first increase its current consumption spending and then decrease spending when income falls e. first decrease its current consumption spending and then increase spending when income falls
A superior level of technology is an important reason the productivity of workers in rich countries is high
a. True b. False Indicate whether the statement is true or false
Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest
groups tend press government for ______________ instead of ________________. A) $50,000,000; economic growth; transfers B) $500,000; transfers; economic growth C) $500,000,000; transfers; economic growth D) $5,000,000; transfers; economic growth E) none of the above
A natural monopolist that is price-regulated at the marginal cost output level will:
a. be producing at the same output and price that an unregulated natural monopolist would choose. b. produce the optimal level of output and earn an economic profit greater than zero. c. produce the optimal level of output and earn a normal profit. d. eventually incur losses if MC is less than ATC.