The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period
a) What is the cost of the CPI basket in 2015?
b) What is the cost of the CPI basket in 2016?
c) What is the CPI for 2015?
d) What is the CPI for 2016?
a) The cost of the CPI basket in 2015 is $1,520.00.
b) The cost of the CPI basket in 2016 is $1,712.50.
c) The CPI for 2015 is 100 because 2015 is the base period.
d) The CPI for 2016 equals 100 × [$1,712.50 ÷ $1,520.00] = 112.66.
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The Heckscher-Ohlin Theorem predicts
A) who benefits and who loses from trade. B) which factors are abundant. C) the income distribution effects of trade. D) which goods will be exported. E) the importance of intraindustry trade.
Answer the following questions true (T) or false (F)
1. Price ceilings result in shortages. 2. All renters benefit from rent control and all landlords lose. 3. There is a shortage of every good that is scarce.