The table below lists the prices and quantities consumed of three different goods from 2014−2016.

2014 2015 2016
Good Price ($) Quantity Price ($) Quantity Price ($) Quantity
A 12 8 16 6 18 5
B 5 18 3 30 4 25
C 1 10 2 5 5 10

a. For 2014, 2015, and 2016, determine the amount that a typical consumer pays each year to purchase the quantities listed in the table above.

Instructions: Round your answers to the nearest whole number.

2014 2015 2016
Consumer expenditure $ $ $

Instructions: Round your answers to two decimal places.

b. The percentage change in the amount the consumer paid is % from 2014 to 2015 and % from 2015 to 2016.

c. It is problematic to use your answers to part b as a measure of inflation because (Click to select) only income is changing both price and consumption are changing only consumption is changing only price is changing .

Instructions: Round your answers to two decimal places.

d. Suppose we take 2014 as the base year, which implies that the market basket is fixed at 2014 consumption levels. Using 2014 consumption levels, the rate of inflation is % from 2014 to 2015 and % from 2015 to 2016. (Hint: First calculate the cost of the 2014 market basket using each year's prices and then find the percentage change in the cost of the basket.)

Instructions: Round your answers to two decimal places.

e. Repeat the exercise from part d, now assuming that the base year is 2015. Using 2015 consumption levels, the rate of inflation is % from 2014 to 2015 and % from 2015 to 2016. (Hint: First calculate the cost of the 2015 market basket using each year's prices and then find the percentage change in the cost of the basket.)

f. Your answers from parts d and e were different because (Click to select) the base years have the same consumption quantities income has changed the base years put different weights on the goods prices have changed

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.

Part two of threewhich accurately describes a cause for inflation? the federal reserve requires banks to keep more money on reserve. the federal reserve raises interest rates and slows economic activity. the government places too much money into circulation. the government places too little money into circulation. what are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop.how does the federal reserve stabilize and safeguard the nation’s economy? (select all that apply.) it distributes currency and oversees fiscal conditions. it implements american monetary policy. it regulates banks and defends consumer credit rights. it regulates and oversees the nasdaq stock exchange. what are functions of the federal reserve? (select all that apply.) it offers financial services within the government. it creates us coins. it prints us dollars. it enters us currency into circulation.how does the federal reserve bank fit into the balance of power among the three branches of the federal government established by the constitution? the chair of the federal reserve is appointed by the president and approved by the senate. the chair of the federal reserve is elected by popular vote. the chair of the federal reserve is appointed by congress and approved by the supreme court. the chair of the federal reserve is appointed in a secret meeting.who appoints the board of governors of the federal reserve system? the us president the us supreme court the us house of representatives the us senatewhy is federal oversight crucial to the operation of the federal reserve bank? the federal reserve is the nation’s central banking system. the federal reserve controls the nomination of legislators to committees. the federal reserve funds mandatory government expenditures. the federal reserve sets rules and regulations for the new york stock exchange.what is the government accountability office (gao)? an independent agency that answers to congress and audits the federal reserve an internal review agency of the federal reserve used to promote its mission a government agency that answers to congress and audits the united states mint a private agency that advises the dent about fiscal policyhow does the law of comparable advantage lead to international trade? countries that do not engage in trade are in a stronger position economically than countries that do trade. countries that cannot produce products efficiently have to trade for the goods and services that other countries have. countries that have more resources are able to trade for a wider variety of items that can be offered for sale. countries make products they can produce efficiently and are able to get the rest of what they need through trade.when might a country produce a product even though it cannot do so efficiently? (select all that apply.) to ensure national security to minimize the sale of exports to ensure a trade deficit to increase the balance of trade

Teatro restoration, inc., begins renovating an old theater for urban edge productions, but after three months teatro demands an extra $250,000. urban edge agrees to pay. refer to fact pattern 13–4. if teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is