Price indexes like the CPI are calculated using a base year. The term base year refers to:
A. the first year that price data are available.
B. any year in which inflation was higher than 5 percent.
C. the most recent year in which the business cycle hit the trough.
D. an arbitrarily chosen reference year.
Answer: D
You might also like to view...
If Rory McIlroy only earned $500 per hour playing golf instead of $1,000 per hour, what should he do?
A) He should be indifferent as to who does the weed-whacking, for the difference in hourly earnings would now be insignificant. B) He should hire a less-productive gardener. C) He should do the weed-whacking himself. D) He should still hire the gardener.
In the above figure, below what minimum price will a perfectly competitive firm shut down rather than produce?
A) for any price less than $16 per unit B) for any price less than $12 per unit C) for any price less than $8 per unit D) for any price less than $4 per unit
Which of the following is not associated with more inelastic demand?
a. a limited amount of time for consumers to respond to a price change b. availability of many close substitutes c. large percentage of income spent on the good in question d. Neither b. or c. is associated with more inelastic demand
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.