Assume the market basket for the consumer price index has two productsbread and milkwith the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals

International capital markets experience a kind of risk not faced in domestic capital markets, namely

A) "economic meltdown" risk. B) Flood and hurricane crisis risk. C) the risk of unexpected downgrading of assets by Standard and Poor. D) the risk of exchange rate fluctuations. E) the risk of political upheaval.

Are public goods excludable? Are they rival in consumption?

We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when

A) supply increases and demand decreases. B) supply and demand for a product simultaneously decrease. C) supply and demand for a product simultaneously increase. D) supply decreases and demand increases.

The possible combinations of goods that can be purchased with a specific income are called the

A. income-consumption curve. B. marginal rate of substitution. C. budget constraint. D. indifference map.