Use the information in the table to calculate a consumer price index (CPI) and the inflation rate. The base year is 1975. Round answers to two decimal places. Market basket Quantity 1975 prices 1976 prices A dozen eggs 22 $0.70 $1.10 Calculator 14 $12.50 $15.00 Microwave oven 3 $150.00 $180.00 What is the CPI for 1975? What is the CPI for 1976? What is the inflation rate for 1976?

Q: Suppose that a fhrm is producing in the short run with output given by Q-65L L2 The firm hires labor…

A: The firm maximizes profit by hiring workers to the point where marginal product equals real wage.

Q: It is common for people trying to lose weight to notice that the first 10 pounds are much easier to…

A: Marginal cost is the change in total cost, per unit change in output.

Q: Bridgman is a candy maker who uses machines that generate noise and doctor next door whose…

A: Manufacturing is the transformation of raw materials or components into completed things using…

Q: Use the table, with data for workers and businesses, to answer the question. The payoff cells are…

A: The equilibria are cells A and D.

Q: Explain the difference between a closed economy fiscal multiplier and an open economy fiscal…

A: Difference between a closed economy fiscal multiplier and an open economy fiscal multiplier:…

Q: Which one of the following statements is false? Keynes thought that the interest rate was the most…

A: Investment plans, according to Keynes, are determined by evaluating the marginal efficiency of…

Q: If college-age athletes drop out of college to play professional sports, principle # is the…

A: The cost of the another best alternative that is foregone is referred to as opportunity cost. It is…

Q: The Bank of England announces its intention to buy dollar-denominated assets by selling gifts in…

A: Devaluation of the currency refers to depreciate currency value in exchange market. When country…

Q: Question 1 of 10 Which of the following is not a common tactic scammers use to get their victims to…

A: Scammers are the persons who take our money by using different tactics. They do fraud with us. At…

Q: Offer an example of a good or service with a negative externality. What is the externality of the…

A: The expense or detrimental impacts of an action on a third party are known as negative…

Q: Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that…

A: The price elasticity of demand is the ratio of the percentage change in quantity demanded to the…

Q: Find the consumers' surplus at a price level of p = $130 for the price-demand equation below. p=…

A:

Q: pIivate investment

A: Government's fiscal policy leads the situation of crowding out.

Q: a) If a business has a long-run cost (TC) function given by TC = aq^3 – bq^2 + ca where q = the rate…

A:

Q: Jarviland is a small country with only two sectors: microchips and computers. This year, the total…

A: Given: The total revenue of the microchips sector is = ₤3 billion The revenue from sales to the…

Q: In February 2022 the €S (euro/dollar) exchange rate was 0.88E/S. In France, a country that uses…

A: The rate that depicts the rate of one currency being measured in terms of another currency for…

Q: Two firms are planning to join the shoe industry. Firm 2 knows the size of firm 1 but firm 1 has…

A: Firm 2 knows the size of firm 1 but firm 1 has incomplete information on the size of firm 2.

Q: Economics what is the EUAC corresponding to an overhaul cost of 4000 at year 3 for a machine with 7…

A: the Estimated Uniform Annual Cost (EUAC) technique communicates life cycle costs as an annualized…

Q: Firm A operates in a perfectly competitive industry with price given by P = %3D $23/unit. Firm A's…

A: "A firm in a perfectly competitive industry is a price taker and can not influence the price."

Q: the COVID-19 crisis continues to deepen, the significant health and economic consequences of this…

A: Ingenuity and technological innovation have led to economic "globalization."In economic terms, it…

Q: The graph below depicts the production function of grain for farmers under average growing…

A: Production-Possibilities Frontier  refers to the idea that scarce factors of production, such as…

Q: All else equal, airline tickets are typically more expensive if bought close to the date of travel.…

A: Businesses employ price discrimination to optimize revenue by charging clients various prices…

Q: 2. a) Explain the quantity theory of money. b) What are the basic assumptions behind the quantity…

A: If quantity of money is higher as compared to the goods/services, then the price level in the…

Q: If the MRPK is less than the cost of capital, a firm should   increase its investment in physical…

A: MRPK is the marginal revenue product of capital which is the additional revenue earned from hiring…

Q: metric tons of wheat and 0.33 metric tons of oil. Production of 1 metric ton of oil consumes 0.08…

A:

Q: If you worked on a "macro level" within Human Services, what are some changes you would try to…

A: Macro-level human services will create an effect on a large scale, it will provide solutions on a…

Q: 6   Assuming the economy is initially at LR equilibrium, suppose in response to international…

A: Introduction Assuming the economy is initially at LR equilibrium, suppose in response to…

Q: Definition of Economic Theory of Government Regulation

A: Economic theory: It refers to the plans and policies that help the economy to grow. It is the theory…

Q: An organization completes the purchase of new asset at a cost of $25,000. It has an yearly operating…

A: To find the annual savings which would provided rate of return of 10% , we will find the present…

Q: The interest rate commonly used by banks to borrow from each other outside the US, which is also…

A: When talking about lending and borrowing activities, banks can exchange money among themselves to…

Q: Suppose a price-taking profit-maximising firm produces output in the short run using only labour as…

A: First order condition says that differentiation of profit with respect to L is zero.Second order…

Q: Determine the unique Nash equilibrium by eliminating dominated strategies

A: Player 2         E F G   A 2,3 2,2 2,0 Player 1 B 3,2 5,3 4,3   C 4,3 1,1 3,3   D 1,2…

Q: Question 36 Presently, union membership represents of the labor force. O less than 14% O between 45%…

A: Since 1983, when 20% of American employees were union members, the percentage of workers who belong…

Q: Determine how the following affect the slope of the output supply curve and explain your results.…

A: In economics, inter-temporal substitution effect explains the impact of changes in the expected…

Q: Consider the AA-DD model with flexible exchange rates. Assume the economy is initially at full…

A: Government Spending is defined as the kind of spending on the public sector, and provides services…

Q: a) The owners of firms in the real world would generally expect (in the long run at least) to have…

A: Economic profit is referred to be as the difference between the revenue generated and the total…

Q: Who benefits from matching the product's demands with its own capabilities?

A: At the marketplace, households make demand for goods and services, while firms supply those goods…

Q: Calculate total profits in this hypothetical economy: Units of capital: 100 Units of labor: 200 W:…

A: Profit is the difference between a company's total revenue and its total implicit and explicit…

Q: How will equilibrium real interest rate and equilibrium quantity of loans change?

A: Solution1) Consider the above given thatThe supply of loanable budgets is established on savings.…

Q: Explain how government borrowing affect interest rate in the market. What impact such change in…

A: The fiscal deficit occurs when government spending exceeds government receipts. The government…

Q: The government announces a cut in the income tax rate. Use the AD/AS model to analyse the short-run…

A: AD-AS model determines the equilibrium GDP and price level in the economy.

Q: The market for lemons refers to a situation where sellers are better informed than buyers about the…

A: In a market, sellers can sell two types of products, that are new and lemon, especially in…

Q: Consider a competitive firm that has access to a technology described by the following production…

A: y = √x1 + x2 Checking for constant returns to scale: y = √ax1 + ax2 y = (a)0.5x1 + ax2 We cannot…

Q: Which of the following statements are correct? A fall in the mortgage interest rate would shift up…

A: Equilibrium in the goods market occurs where quantity demanded equals quantity supplied.

Q: Your firm operates in a perfectly competitive market. The market price is above both  your firm’s…

A: Here in the Y axis is the price of commodity and in x axis the demand for the commodity. The price…

Q: The W Brewery company produces beer, which it sells to distributors in barrels. The brewery incurs a…

A: Given  Fixed cost for beer production =$16,506 Variable cost  = $20 per barrel Demand constraint: v=…

Q: compare to the actual data points on the graph? Which model do you think fits the data best and why?

A: Solution 1) Consider the above given that a) With the given endpoints viz.`(x1, y1)= (0,576673) and…

Q: Find the quantities which maximize utility, if you have the utilit functions is (n=Q1Q2+Q1+2Q2)…

A: Utility is maximised at a point where slope of an indifference curve is equal to the slope of a…

Q: What is the marginal cost, if the cost function given is C(Y)=6 a) Y? b) 3Y c) 6Y d) 12Y

A: Marginal cost refers to an additional cost that occurs from producing one more unit of output.

Q: If a country has a per capita GDP of $3,200 and it grows at a 3.1% annual rate. How long will it…

A: Changes in the level of gross domestic product per capita account for a large part of people's…