The following table contains information about an economy that produces only soda and pizza. The base year is 2020. Use this information to answe the question. Year Price of Soda Quantity of Soda 2020 100 $10 2021 120 12 2022 120 14 What is the approximate percentage increase in prices from 2021 to 2022? O a. 0 percent Ob. 13 percent O c. 16 percent Od. 22 percent Oe. 38 percent $3 3 4 Price of Pizza Quantity of Pizza 50 70 70

The following table contains information about an economy that produces only soda and pizza. The base year is 2020. Use this information to answe the question. Year Price of Soda Quantity of Soda 2020 100 $10 2021 120 12 2022 120 14 What is the approximate percentage increase in prices from 2021 to 2022? O a. 0 percent Ob. 13 percent O c. 16 percent Od. 22 percent Oe. 38 percent $3 3 4 Price of Pizza Quantity of Pizza 50 70 70

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 7SCQ: Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at...

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Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?
1:02 ME . O 51% Adobe Scan 01 Oct 2021 (1) Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years. Year 2000 2010 Price of an automobile $40,000 $50,000 Price of a loaf bread $20 $30 Number of auto-mobiles produced 100 cars 120 cars Number of loaves of bread produced 600,000 loaves 500.000 loaves How much have prices risen between year 2000 and year 2010? Compare answers given by Laspeyres and Passche price indices Share Modify Comment More V
Consider Figure 10.4 from The Economy, which depicts Julia's choice over consumption now and consumption later. She has no income now and an income of $100 later. Ma's endown Consumption later (5) 100 82 FF C10% interest rate) FF interest rate) 35 All's IC (higher uity) MATIC Ma's Cough point ) Ali's Cower uni 91 56 58 Consumption now (5) [If the image above doesn't appear click here to open it in a new tab.] If the current interest rate is 78%, which of the following statements is correct? Select all correct answers. Ewould be an optimal choice for Julia, as she would be able to completely smooth her consumption over the two periods by consuming exactly the same amount in each Her indifference curves show that Julia would prefer to take all of the consumption now rather than some in each period. At G. Julia is on the highest possible indifference curve given her feasible set. DE is not a feasible choice for Julia given the current interest rate At F, the interest rate exceeds Julia's…
Suppose that Yvette receives a pay raise of $1,200 per year. She can either use the extra money to consume goods and services, or she can save it by depositing it in a bank For each of the alternative annual interest rates in the following table, indicate how much interest Yvette would eam per year on her annual raise if she saves it. (Note: Assume that no income taxes are deducted.) Interest Rate Interest Earned (Dollars) (Percent) (Dollars) 20 A higher interest rate gives Yvette, incentive to save.
The economy of Greatstown produces Oranges, Strawberries, and Peaches. Below are the prices and quantities of these products produced between 1999 and 2001: Year 1999 1999 2000 2000 2001 2001 Price Quantity Price Quantity Price QuantityOranges $0.9 5 $1.4 3 $1.3 2Strawberries $0.7 3 $1.4 5 $1.9 6Peaches $1.7 9 $1.8 8 $0.5 8 Calculate Greatstown’s nominal GDP in 2000. Calculate Greatstown’s real GDP in 2001, using 1999 as the base year.
AMoving to the next question prevents changes to this answer. Question 3 of Question 3 1 points Save Answ The branch of economics that analyses the market behaviour of individual consumers and firms in an attemp to understand the decision-making process of firms and households. a)Gross Domestic Product O b)Micro Economics c)Macro Economics d)Logistics e)Gross National Product O0000
Again, please work with the following data set. It describes production of the only three goods made by Economy Zeta, along with their prices, for each of three years. Quantity Price of Quantity of Price of Quantity of Price of of Food Food Energy Energy Shelter Shelter 2018 800 $5 1000 $10 200 $100 2019 850 $6 1100 $12 240 $100 2020 850 $7 1200 $14 300 $100 Year Economists estimate that the average person in this economy consumes 12 units of food, 20 units of energy, and 2 units of shelter over the relevant period. 2018 is the base year. Using the GDP deflator, the inflation rate between 2018 and 2019 for this nation is ______________ percent. (Enter your answer "as a percent, but without the percentage sign." If you think the inflation rate is 99.99 percent, enter only 99.99 in the blank.)
5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Spent Price Price Amount Price Amoun Amount Price Spent t Spent Spent Apples Bananas $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 2.05 $0.88 $0.29 $0.95 12 Grapes Raspberries 1 Total Price Index Inflation 2. 1.9 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004. Who in an economy is the big winner from inflation and why?
Create a speech about the relationship of income, saving and consumption to price changes in shopping.
What is it mean by full price and income when discussing household consumption?
Table 6 shows the choices that Marina makes on Good1 and Good 2 in July, August and September. Does Marina consider both goods to be normal goods or not? (Hints: When you try to sketch a diagram to illustrate the concept, you don't have to be very precise in calculations and you don't need to be overly accurate). P P, Income ($) July August September 60 20 40 1 80 40 20 2 120 10 2 2 140 Table 6 O a. Good I is inferior, Good 2 is normal good. O b. Undetermined. O c. Good I is normal, Good 2 is inferior good. O d. Good I is normal, Good 2 is also a normal good.
Prepare a SWOT analysis using the details below. Maria is planning to open up a Cafeteria near her house. She closed her previousCafeteria few months ago because the rental keeps getting higher and the income is decliningbecause of the COVID19 pandemic. It came up to her the idea to open again since a lot ofpeople are asking for online delivery of their favorite snacks offered in her shop since most ofthe people would stay at home and would prefer food delivered in their doorsteps. Since sheowned a vacant lot near her house, and she thought that re-opening her shop in that locationwould be a great idea and she will not pay rentals anymore. And her Café Services will stillcontinue but with the added services like the Food Panda does.