Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $51; and in 2016, the basket's cost was $52 . The value of the CPI in 2014 was

Which of the following is an example of U.S. foreign portfolio investment?

a. A U.S. legal office opens a branch office in Holland. b. Erica, a U.S. resident, buys bonds issued by the Swiss government. c. Both A and B are examples of U.S. portfolio investment. d. Neither A nor B are examples of U.S. portfolio investment.

The welfare program economists believe to be most compatible with economic efficiency is

A. a regressive tax system. B. AFDC. C. a negative income tax. D. Medicare/Medicaid.