Suppose you're in the trucking business and you purchase a $100,000 truck with a one year loan for the full amount. Ignoring interest payments, what is your fixed cost per month?

Explain the difference between general grants and categorical grants. Under what circumstance will they have the same impact? In that case, will one have an advantage over the other?

What will be an ideal response?

If the average price level in 2002 was 1.25 relative to the base year in 1992, then:

a. a dollar in 2002 bought just 80 percent of the goods and services that a dollar bought in 1992. b. average prices were 80 percent higher in 2002 than in 1992. c. a dollar in 2002 bought 25 percent more goods and services than a dollar bought in 1992. d. average prices were 125 percent higher in 2000 than in 1992. e. purchasing power rose 25 percent between 1992 and 2002.