Measuring the Cost of Living
1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more
than 300 times as much as Babe Ruth earned in 1931. However, prices also have risen si
Measuring a Nation's Income
1. Macroeconomists study
a. decisions of households and firms.
b. the interaction of households and firms.
c. economy-wide phenomena.
d. regulations on firms and unions.
Chapter 14/The Basic Tools of Finance
1. Demonstrate that whether you would prefer to have $225 today or wait five years for $300 depends on the interest
rate. Show your work.
For example at 3 percent the present value of $300 in fiv
Chapter 1: 10 Principles of Economics
26. Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are d