The fixed basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C. Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C. Base year prices are $1 for each unit of A, B, and C. What is the CPI in the current year?
A) 140
B) 43
C) 233
D) 430
E) 100
C) 233
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Average variable cost equals
A) fixed cost divided by output. B) total variable cost divided by output. C) marginal cost divided by output. D) marginal cost plus fixed cost. E) marginal cost multiplied by output.
The "marginal rate of substitution" between two goods is measured by:
A) the ratio of the market prices of the two goods. B) the number of units of a good consumed divided by the market price of the other good. C) the number of units of one good a consumer would give up to consume one more unit of another good, while holding total utility constant. D) the consumer's budget constraint divided by the price of each good.
A recent economics graduate is looking for a position as an industrial economist. During the period this individual starts looking for a job and ultimately finds one, he may be classified as:
a. seasonally unemployed. b. frictionally unemployed. c. cyclically unemployed. d. structurally unemployed. e. occasionally unemployed.
Ceteris paribus, when households spend less but do not supply of all their additional saving to the loanable funds market,
a. total spending will exceed below total income, satisfying Say's law. b. total spending will drop below total income, violating Say's law. c. total spending will drop below total income, thereby satisfying Say's law. d. total spending will equal total income, violating Say's law. e. this will contribute to an economic expansion.