The consumer price index (CPI) tends to understate the true rate of inflation
a. True
b. False
Indicate whether the statement is true or false
False
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The long-run marginal cost (LMC) is the increase in the cost incurred by the firm when producing one additional unit of output, holding:
A. neither the workforce nor the production facility constant. B. the workforce and the production facility constant. C. the workforce constant. D. the production facility constant.
If a country wants to promote future growth, it should
A) produce more capital goods today. B) produce more consumer goods today. C) produce only economic goods. D) produce only needed goods.
Corporations are able to raise large amounts of financial capital because
A) of the tax breaks corporations are given relative to partnerships or proprietorships. B) of the elimination of the problem of separation of ownership and control. C) of limited liability and the treatment of a corporation as an individual entity. D) of their greater ability to monitor the performance of decision makers.
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year
Refer to the above data. If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is:
A.
40 percent
B.
60 percent
C.
80 percent
D.
100 percent