A price index is:
a) a comparison of the current price of a market basket to a fixed point of reference.
b) a comparison of real GDP in one period relative to another.
c) the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period.
d) a ratio of real GDP to nominal GDP.
a) a comparison of the current price of a market basket to a fixed point of reference.
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If mining companies are indifferent between operating and not operating a quarry, that quarry is
a. discounted. b. usurious. c. marginal. d. nonexcludable.
The Hardboard Construction Company hired Bob at $10 an hour, but its output of doll houses only increased by three units a day. Two weeks later, the company purchased an $8 hammer for Bob and output increased by twelve units. Since the hammer increased
the marginal product more than Bob did, and at less cost, Hardboard fired Bob. Is this consistent with the theory of marginal productivity? Why or why not?