Answer the following questions true (T) or false (F)
1. Currently, the base year for the CPI is the average of prices in the years 1982 to 1984.
2. To obtain real average hourly earnings, nominal average hourly earnings are multiplied by the CPI.
3. The CPI in 2010 was 218, while the CPI in 1980 was 82. If you had $5,000 in 1980, its equivalent purchasing power in 2010 would be $10,850.
1. TRUE
2. FALSE
3. FALSE
Economics
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Perfectly elastic demand curves are irrelevant, since real world demand curves are never perfectly elastic
a. True b. False
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Average revenue for a perfectly competitive firm is equal to
a. price times output b. marginal revenue c. total revenue/marginal revenue d. output/total revenue e. zero
Economics