Country A and country B initially have the same per capita income. Suppose that A sustains an annual growth rate of 3.5 percent, while the annual growth rate of country B is 1.75 percent. The "rule of 70" indicates that after forty years, the per capita income of country A will be approximately ____ that of country B

Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Walmart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store,

often go out of business because they lose customers. This story demonstrates that a. consumers are boycotting local retailers b. Wal-Mart engages in illegal acts of monopolization c. there are diseconomies of scale in retail sales d. there are economies of scale in retail sales e. Wal-Mart is managed by ruthless business people

Answer the following questions true (T) or false (F)

1. Currently, the base year for the CPI is the average of prices in the years 1982 to 1984. 2. To obtain real average hourly earnings, nominal average hourly earnings are multiplied by the CPI. 3. The CPI in 2010 was 218, while the CPI in 1980 was 82. If you had $5,000 in 1980, its equivalent purchasing power in 2010 would be $10,850.