The CPI is a useful index for all of the following reasons except
A. it is used to determine whether people's incomes are keeping up with the costs of the things they buy.
B. it is used to measure changes in the cost of living.
C. it used to measure the average price level of all final goods and services produced.
D. it is used to compute the U.S. inflation rate.
Ans: C. it used to measure the average price level of all final goods and services produced.
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Which statement shows income as a factor affecting demand?
a. A factory in town gives its employees bonuses, and mall purchases increase. b. Many people move into a suburb because it has affordable housing. c. Advertising convinces people that jeans make them look overweight. d. Meteorologists predict a winter with lots of snow, so shovel sales rise.
Happy Tots Child Care Units of Labor per WeekOutput per WeekMarginal Product per Week144295313441635182 Price of a unit of output: $150 per week.Cost to Happy Tots of hiring one more unit of labor: $400 per week.Table 16.1 Refer to Table 16.1. Suppose the cost of child care workers (units of labor) is the only cost the firm faces. How many units of labor would the firm need to hire to maximize profit?
A. Four B. Five C. Two D. Three