If the CPI basket costs 35 in the base period but costs 42, what is the CPI in the next period?
A) 83.3
B) 42
C) 20 percent
D) 120
Question 2
Sam's demand curve for pizza
A) lies above her marginal benefit curve for pizza.
B) lies below her marginal benefit curve for pizza.
C) is the same as her marginal benefit curve for pizza.
D) has one point in common with her marginal benefit curve for pizza.
Question 3
Which of the following would lead GDP to overstate economic welfare?
A) the existence of home-cooked meals
B) restaurant workers that under-report tip income
C) a self-employed CPA who takes a longer than normal vacation
D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution
