During a business cycle recession, total production ________ and total employment ________

The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The cost of the CPI market basket in 2010 is

A) $52.00. B) $5.00. C) $64.00. D) $8.50. E) unable to be calculated because information is needed about the quantities purchased in 2010.

Which of the following activities, if any, represents an external cost? a. The benefits that accrue to society when an individual receives a college education

b. The increase in property values of vacant lots in an area near where a new amusement park is constructed. c. The pollination of apple trees that occurs when a beekeeper locates next door to an apple orchard. d. None of the above