Briefly explain why a jacket is a private good.
What will be an ideal response?
A private good such as a jacket has two critical properties: it is rival and excludable. First, a jacket is rival in consumption because if one person wears a particular jacket, nobody else can be wearing the same jacket. Second, a jacket is excludable. It is easy to keep someone from wearing your jacket by not giving it to him or by locking it up in your house.
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In economics, all the items that people would consume if they had unlimited income are known as
A) wants. B) aggregates. C) outputs. D) needs.
If the CPI was 125 this year and 120 last year, then
a. the cost of the CPI basket of goods and services increased by 4.2 percent this year. b. the price level increased by 4.2 percent this year. c. the inflation rate for this year was 4.2 percent. d. All of the above are correct.