Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50¢ per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75¢ per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:

A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve

A. downward by less than $0.50. B. downward by exactly $0.50. C. upward by exactly $0.50. D. upward by less than $0.50.

According to Adam Smith, a well-governed society's wealth is positively related to

A) the division of demand. B) the division of labor. C) the degree to which society can eliminate scarcity. D) the degree to which society can encourage and promote greed.