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Author Question: Richard receives government transfer payments and currently consumes 5 guns and 6 goose livers. ... (Read 11 times)

fnuegbu

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on: Jul 1, 2018
Richard receives government transfer payments and currently consumes 5 guns and 6 goose livers. Assume the price of guns decreases by 10 and the price of goose liver increases by 20. The government raises Richard's transfer payments so he can still afford 5 guns and 6 goose livers. Does this constitute a true cost-of-living adjustment (COLA)?
 
  A) No. Richard is overcompensated.
  B) No. Richard is undercompensated.
  C) Yes. The payment just achieves the right level of compensation.
  D) Not enough information.

Question 2

A true cost-of-living adjustment (COLA) in response to a change in prices would compensate consumers so that they would be able to
 
  A) purchase the same bundle they purchased before prices changed.
  B) achieve the same level of utility they did before prices changed.
  C) face the same choices they did before prices changed.
  D) achieve an increase in utility that is equal to the rate of inflation.
Microeconomics ¦ Perloff ¦ 8th Edition
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joshraies

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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fnuegbu

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

mammy1697

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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