Innovations, including new products and services, in financial markets and institutions have made the job of defining the money supply easier.
Indicate whether the statement is true or false
Ques. 2If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?
A) The cost of living has increased by 6. B) The cost of living has increased by 12.7.
C) The cost of living has decreased by 6. D) The cost of living has increased by 2.9.
Ques. 3If the MPC is 0.95, then a 10 million increase in disposable income will
A) increase consumption by 200 million. B) decrease consumption by 105 million
C) increase consumption by 9.5 million. D) increase consumption by 950 million.
Ques. 4If grocery stores were legally required to charge a 10-cent fee for disposable grocery bags, who would bear the largest burden of this fee?
What will be an ideal response?
Ques. 5Countries that are more globalized tend to have
A) a higher likelihood of war or revolution. B) lower levels of foreign direct investment.
C) lower levels of real GDP per capita. D) higher growth rates in real GDP per capita.
Ques. 6Cost-plus pricing may be a reasonable way to determine price when
A) marginal cost and average cost are about the same.
B) marginal cost differs significantly from average cost.
C) marginal cost and average fixed cost are roughly equal.
D) marginal cost is very low.
Ques. 7Most economists believe that only a small gap between the wages of white males and the wages of other groups is due to education. Most of the gap is explained by discrimination.
Indicate whether the statement is true or false
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