The consumer price index or CPI includes
A) The cost of a standard market basket bought by consumers in the current year.
B) The cost of a standard market basket bought by consumers in the current year relative to a base period.
C) The cost of a standard market basket bought by producers in the current year.
D) The cost of a standard market basket bought by producers in the current year relative to a base period.
Answer: B
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Refer to the given graph. A movement from a to b along C 1 might be caused by a(n):
A. recession.
B. wealth effect of an increase in stock market prices.
C. increase in income tax rates.
D. increase in real GDP.
Free riding would be an appropriate description of which of the following behaviors?
a. People who enjoy having nature conserved by The Nature Conservancy but who do not contribute to the organization. b. People crowding into a public park on a nice summer day. c. A fisher putting a more powerful motor on her boat so as to get to the fishing grounds before others. d. Computer software developers who do not charge for their finished programs.