exhibit above, for the specific factors model, a rise in the price of cloth everything else constant A. Increases the real income of land owners. B. Decreases the real income of owneres of capital. C. Makes workers real income in terms of cloth increase. D. Makes workers real income in terms of food increase. E. None of the above.

exhibit above, for the specific factors model, a rise in the price of cloth everything else constant A. Increases the real income of land owners. B. Decreases the real income of owneres of capital. C. Makes workers real income in terms of cloth increase. D. Makes workers real income in terms of food increase. E. None of the above.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Similar questions

2000 2005 2010 2015 2020 95.4 107 116.5 126.6 137 The above table shows a history of the Consumer Price Index (CPI) in Canada (2002 100). The price of a pair of shoes in 2020 was $69. What was the real price of the pair of shoes in 2020, expressed in 2005 dollars? O A. $53.89 O B. $49.73 O C. $61.43 O D. $58.58 Next page
Consider the following data on Prices and Quantities of oranges and VCRs. From a. - k. 3 marks each An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The bose year is 1998. 1998 1999 Oranges Price Quantity Price Quantity VCRs $2 5,000 $3 4,000 V.00 1,000 $300 2,000 a. Calculate the total value of goods and services at current prices in this economy in 1998. b. Calculate the total value of goods and services at current prices in this economy in 1999. c. Calculate the total value of goods and services at constant prices in this economy in 1998 d. Calculate the total value
What is the ‘impact of a increase in the price of computer chips on the market for personal computers classify as? a. Micro, examining one individual b. Micro, examining one specific firm c. Micro, examining one sector of economy
The main determinant of the behavior of people in which the law of demand applies is the ______________ of the commodity being demanded. A. real income B. nominal income C. price D. all of the above
A typical consumer's "leisure basket" in the base year 2019 is as follows: 20 movie tickets $15.00 each 4 theme park tickets $80.00 each 30 swimming passes $10.00 each 2 interstate holidays $400 each 1 international holiday $2000 each The closure of international borders decreases demand for international holidays in 2020. This causes interstate holidays to rise in price to $800 each. The price of other items in the leisure basket are unchanged. a. Calculate the change (as a percentage) in the "leisure index" between 2019 and 2020. b. Suppose consumer preferences change in 2020 and they are completely indifferent between two interstate holidays and one international holiday. In this situation, how large is the substitution bias in the "leisure index"? c. Explain how biases in the "leisure index" create a difference between the price changes consumers experience and the price changes described by the "leisure index".
Use the table below to answer the following questions. Year 2015 2016 2017 O A. fell; rose O B. fell; fell C. rose; fell OD. fell; did not change O E. rose; rose Refer to Table 3.1.1. Between 2016 and 2017, the price of coffee relative to the price of tea Table 3.1.1 Table 3.1.1 Coffee Price $2.25 $2.50 $2.25 Tea Price $2.10 $2.00 $2.20 Cola Price $1,80 $2.00 $2.00 , while the price of coffee relative to the price of cola
The substitution bias in the consumer price index occurs because a. the consumer price index assumes that consumers buy a fixed basket of goods when in fact consumers can substitute cheaper items for more expensive ones b. the consumer price index counts only price increases and ignores any price decrease c. the consumer price index includes the prices of only domestically produced goods when in fact consumers buy imported goods d. the consumer price index includes the prices of every good and service when in fact consumers do not typically buy every good and service
The expenditures of a typical family on gas, food,and clothing in 2009 and 2010 are given in the table below. Assume quantses are constant trom 2009 to 2010. Expenditures in 2009 (in S) S60 310 80 Category Expenditures in 2010 (in S) Gas 568 Food 341 24 Clothing When the base year is 2009 the value of Consumer Price index (CPI) for year 2010 is (Round your response to wo decimal places) Incorrect: 1 Check answer Clear all
J D The following table contains information about an economy that produces only soda and pizza. The base year is 2020. Use this information to answer the question. Year Price of Soda Quantity of Price of Pizza Soda 2020 100 $10 2021 120 12 2022 120 14 What is the approximate percentage increase in prices from 2021 to 2022? O0 percent O b. 13 percent O 16 percent O d. 22 percent O38 percent $3 3 4 Quantity of Pizza 50 70 70
8. When computing the cost of the basket of goods and services purchased by a typical consumer, which of the following changes from year to year? the quantities of the goods and services purchased the prices of the goods and services the goods and services making up the basket All of the above are correct. a. b. C. d. A a B) b Oc D d
The income effect is a.the change in demand due to changes in real income due to a price change of the goodb.the change in demand of both goods due to changes in real income due to a price change of the goodc.the change in income due to changes in the demand for the goodd.observable but only after all the purchases have been made.
5) In 2012, a consumer spends $1000 on health insurance. In 2013, she decides to buy more, spending $1300. In 2014, she increases that amount further to $1500. In 2015, she stops increasing the amount she spends on health insurance. For this consumer in 2015: A. The marginal product from health insurance is greater than the marginal product from all other goods B. The marginal product from health insurance is equal to the marginal product from all other goods C. The last dollar spent on all other goods generates more utility than the last dollar spent on health insurance D. None of the above