Questions from General Economics

Q: The residents of Vegopia spend all of their income on cauliflower,

The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2013, they spend a total of $200 for 100 heads of cauliflower, $75 for 50 bunches of broccoli, and $50 for...

Q: Describe the three problems that make the consumer price index an imperfect

Describe the three problems that make the consumer price index an imperfect measure of the cost of living.

Q: If the price of imported French wine rises, is the consumer

If the price of imported French wine rises, is the consumer price index or the GDP deflator affected more? Why?

Q: Explain briefly what the CPI measures and how it is constructed.

Explain briefly what the CPI measures and how it is constructed. Identify one reason why the CPI is an imperfect measure of the cost of living

Q: Societies choose what share of their resources to devote to consumption and

Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. a....

Q: What is the opportunity cost of investing in capital? Do you

What is the opportunity cost of investing in capital? Do you think a country can “overinvest” in capital? What is the opportunity cost of investing in human capital? Do you think a country can “overin...

Q: In the 1990s and the first decade of the 2000s, investors

In the 1990s and the first decade of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many American...

Q: In many developing nations, young women have lower enrollment rates in

In many developing nations, young women have lower enrollment rates in secondary school than do young men. Describe several ways in which greater educational opportunities for young women could lead t...

Q: Sarah is awake for 100 hours per week. Using one diagram

Sarah is awake for 100 hours per week. Using one diagram, show Sarah’s budget constraints if she earns $6 per hour, $8 per hour, and $10 per hour. Now draw indifference curves such that Sarah’s labor-...

Q: International data show a positive correlation between income per person and the

International data show a positive correlation between income per person and the health of the population. a. Explain how higher income might cause better health outcomes. b. Explain how better health...