Consumers in Beachland consume only two goods, sodas and DVDs. If they spend $10 on sodas
And $90 on DVDs a month, how many sodas and DVDs are in their CPI market basket if the price of
A soda is $1 and the price of a DVD is $9?
A) 1 soda and 9 DVDs
B) 10 sodas and 10 DVDs
C) 9 sodas and 1 DVD
D) 10 sodas and 9 DVDs
E) It is impossible to determine the market basket without information on the quantity of at least one of the two goods consumed.
Correct Answer:
Verified
Q11: If the nominal wage is $30 in
Q12: For the purpose of measuring the cost
Q13: The GDP deflator measures
A)the price level.
B)nominal GDP.
C)the
Q14: The CPI is reported once every
A)quarter.
B)other year.
C)year.
D)week.
E)month.
Q15: An example of the commodity substitution bias
Q17: The CPI was 170 last year and
Q18: In 1970, the CPI was 39 and
Q19: Suppose the Bureau of Labor Statistics uses
Q20: Economists agree that the CPI
A)is a near
Q21:
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