Refer to Table 20-12. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2016, as measured by the consumer price index
What will be an ideal response?
Total expenditures for 2001 = (10 × $1.00 ) + (15 × $5.00 ) + (8 × $2.00 ) = $101.00.
Total expenditures for 2015 = (10 × $1.50 ) + (15 × $7.00 ) + (8 × $3.00 ) = $144.00.
Total expenditures for 2016 = (10 × $1.75 ) + (15 × $6.75 ) + (8 × $3.50 ) = $146.75.
The CPI for 2015 = [($144.00/$101.
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Last year the exchange rate between U.S. dollars and Mexican pesos was 10 pesos per dollar. Today is it 11 pesos per dollar. Here, the dollar ________ against the peso, and the peso ________ against the dollar
A) appreciated; depreciated B) depreciated; appreciated C) appreciated; appreciated D) depreciated; depreciated
Empirical observations on actual North-South trade patterns tend to
A) support the validity of the Heckscher-Ohlin model. B) support the validity of the Leontief Paradox. C) support the validity of the Rybczynski Theorem. D) support the validity of the wage equalization theorem. E) support the validity of the neo-imperialism exploitation theory.