The CPI is a measure of the
A) percentage change in the price level.
B) average prices of all goods.
C) average prices paid by consumers for a fixed basket of goods and services.
D) average prices of all goods and services produced.
E) average change in the output of the goods and services purchased by a typical urban consumer.
C
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Which of the following is true?
a. The growth of third-party payments during the last several decades has helped control inflation in the health-care sector. b. Public policy encourages Americans to purchase low deductible/low co-payment health insurance coverage through their employers. c. Low deductible health insurance coverage encourages health-care consumers to search for the best prices. d. The 2.9 percent Medicare payroll tax is sufficient to cover the cost of the promised future health-care services to senior citizens.
Suppose a gardener produces both tomatoes and squash in his garden. If the opportunity cost of one bushel of squash is 2/5 bushel of tomatoes, then the opportunity cost of 1 bushel of tomatoes is
a. 2/5 bushel of squash. b. 5/2 bushels of squash. c. 2 bushels of squash. d. 5 bushels of squash.