Suppose a basket of goods and services has been selected to calculate the consumer price index. In 2005, the basket of goods cost $108.00; in 2006, it cost $135.00; and in 2007, it cost $168.75 . Which of the following statements is correct?
a. Using 2005 as the base year, the economy's inflation rate was higher in 2007 than it was in 2006.
b. If 2007 is the base year, then the CPI is 33.75 in 2006.
c. If the CPI is 156.25 in 2007, then 2005 is the base year.
d. Using 2005 as the base year, the economy's inflation rate for 2006 was 27 percent.
c
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Which of the following statements is true regarding perfect competition?
a. A perfectly competitive market only exists in the agricultural market. b. A perfectly competitive market is a hypothetical extreme. c. There are many examples of perfectly competitive markets in different industries. d. Perfectly competitive markets are the opposite of price takers.
Answer the following statement(s) true (T) or false (F)
1. Good fringe benefits will cause a rightward shift of a firm’s labor supply curve. 2. Monopsony exists when demand for labor and the quantity of labor supplied are at equilibrium. 3. Monopsony is considered good for workers because it evens out the difference between union and nonunion wages. 4. Membership in labor unions is higher in the private sector than in the public sector. 5. The percentage of workers who are union members has decreased dramatically since the 1970s.
Oligopolies that produce identical products such as steel have
A. no control over the price of their product because of the availability of perfect substitutes. B. no control over the price of their product because of the large number of buyers in the market. C. some control over the price of their product because each firm sells a substantial share of the market. D. some control over the price of their product because of the small number of buyers in the market.
Which of the following statements is FALSE?
A. consumption = saving - disposable income B. consumption + saving = disposable income C. saving = disposable income - consumption D. disposable income - saving = consumption