The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each
The CPI this year is ________. A) 1.60
B) 62.5
C) 160
D) 140
C
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The elasticity of a demand curve at any point can be ascertained by its steepness.
Answer the following statement true (T) or false (F)
Refer to Table 21.2. The middle 20 percent of earners took home ________ of all income earned in Mysteria
A) 9% B) 18% C) 42.9% D) 52.9%
The above figure shows a nation's production function. Point B is
A) unattainable. B) attainable if the nation uses resources inefficiently. C) attainable if the nation uses resources efficiently. D) the maximum amount of real GDP the nation can ever produce. E) Both answers C and D are correct.
Consider the same market for nonalcoholic beer as in the previous question. Cudweiser's response function is
a. QB = 2,000 ? .5QC b. QB = 1,500 ? .5QC c. QC = 2,000 ? .5QB d. QC = 1,500 ? .5QB