The chain-weighted output index method of calculating real GDP compares
A) compares the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output.
B) quantities produced in different years using prices from a year chosen as a reference period.
C) quantities produced in different years with the prices that prevailed during the year in which the output was produced.
D) prices at different points in time using a sample of goods that is representative of goods purchased by households.
A
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Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent. This response means that the demand for Bears tickets is
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
Using the above table, the marginal utility for the sixth glass of water is
A. 260 utils. B. 255 utils. C. -5 utils. D. 5 utils.
Refer to Figure 7.5. Which diagram represents isoquants for fixed-proportions technology?
A. A
B. B
C. C
D. D
Given the basic rule of thumb for the relationship among inflation, productivity and nominal wage increases, if wages rise by 1 percent and productivity increases 2 percent, one would predict inflation to be:
A. 3 percent. B. 1.5 percent. C. 0 percent. D. ?1 percent.