The average price of gasoline in your neighborhood is $2.15 per gallon
Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.06 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you?
A) No, my friend is misled; clearly, the lower-priced gasoline must be of inferior quality and could damage vehicles.
B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station.
C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods.
D) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
B
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Assume the average annual CPI values for 2015 and 2016 were 207.3 and 215.3, respectively. What was the percent increase in the CPI between these two years?
A) 3.86 B) 0.96 C) 8.0 D) 1.04
Action to reverse the effect of official intervention on the domestic money supply is called
A. sterilization. B. a crawling peg. C. the gold standard. D. a parallel market.