« previous next »

Author Question: What is the CPI and how is it calculated? What will be an ideal ... (Read 76 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
on: Jun 29, 2018
What is the CPI and how is it calculated?
 
  What will be an ideal response?

Question 2

The mercantilist economic doctrine was widely followed from the sixteenth to the eighteenth century in Europe.
 
  Mercantilists advocated the use of tariffs to restrict trade as they believed that countries that export more than they import will increase wealth. What could be the problem with such an economic policy?


jesse.fleming

  • Sr. Member
  • ****
  • Posts: 301
Reply #1 on: Jun 29, 2018
Answer to Question 1

The CPI is the Consumer Price Index. The CPI equals (Cost of CPI basket at current prices  Cost of CPI basket at base-period prices) 100.

Answer to Question 2

While the Mercantilists believed that higher exports would increase wealth, they overlooked some of the adverse effects of tariffs. With tariffs, consumers pay a price that is higher than the world price of a commodity. Tariffs raise prices for consumers and reduce total surplus in a country. Although government earns revenues from tariffs, it also leads to deadweight losses in the market.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
What are examples of ideal forms? What are examples of ideal forms?
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ... Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...
A company that makes environmental measuring devices has calculated their revenue and costs as ... A company that makes environmental measuring devices has calculated their revenue and costs as ...
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Gamete genotype frequencies calculated from genetic linkage data Gamete genotype frequencies calculated from genetic linkage data
Video: Deglutition

For a complete list of videos, visit our video library