Questions from General Economics

Q: List the four components of expenditure. Which is the largest?

List the four components of expenditure. Which is the largest?

Q: Why should policymakers care about GDP?

Why should policymakers care about GDP?

Q: The New York Times cost $0.15 in 1970 and

The New York Times cost $0.15 in 1970 and $2.00 in 2011. The average wage in manufacturing was $3.36 per hour in 1970 and $23.09 in 2011. a. By what percentage did the price of a newspaper rise? b. By...

Q: Which of the problems in the construction of the CPI might be

Which of the problems in the construction of the CPI might be illustrated by each of the following situations? Explain. a. the invention of the cell phone b. the introduction of air bags in cars c. in...

Q: Before selling anyone a health insurance policy, the Kramer Insurance Company

Before selling anyone a health insurance policy, the Kramer Insurance Company requires that applicants undergo a medical examination. Those with significant preexisting medical problems are charged mo...

Q: Which do you think has a greater effect on the consumer price

Which do you think has a greater effect on the consumer price index: a 10 percent increase in the price of chicken or a 10 percent increase in the price of caviar? Why?

Q: Over a long period of time, the price of a candy

Over a long period of time, the price of a candy bar rose from $0.20 to $1.20. Over the same period, the consumer price index rose from 150 to 300. Adjusted for overall inflation, how much did the pri...

Q: Explain the meaning of nominal interest rate and real interest rate.

Explain the meaning of nominal interest rate and real interest rate. How are they related?

Q: Charlie buys only milk and cereal. Milk is a normal good

Charlie buys only milk and cereal. Milk is a normal good, while cereal is an inferior good. When the price of milk rises, Charlie buys a. less of both goods. b. more milk and less cereal. c. less milk...

Q: The consumer price index measures approximately the same economic phenomenon as

The consumer price index measures approximately the same economic phenomenon as a. nominal GDP. b. real GDP. c. the GDP deflator. d. the unemployment rate.