Question

In: Economics

1.As a resident of the United States, if your nominal salary does not increase for three...

1.As a resident of the United States, if your nominal salary does not increase for three years, your real salary is likely to have declined. T or F.

2. The basket used to calculate the Consumer Price Index in the United States contains one unit of every good that is regularly purchased by the average urban consumer. T or F

3. The consumer price index has a value of 125 in the year 2002 and a value of 150 in the year 2010.

In this case, $500 in the year 2002 has the same purchasing power as how many dollars in the year 2010?

Round to the nearest whole number.

4. The price of gas in 1992 was $1.09 per gallon and in 2013 it was $3.51.

The price index in 1992 was 140 and in 2013 it was 233.

Based on this information:

The percentage change in the nominal price of gas was --- %. Enter a number rounded to two decimal places.

In real terms, the price of gas was cheaper in which year? --- Enter 1992 or 2013.

5. If the average wage paid to the worker was $20 in 2002 and $30 in 2012, then the average worker in the year 2012 must have been better off in terms of being able to purchase more goods and services. T or F

Expert Solution

Answer 1) TRUE

ANSWER 2) FALSE

ANSWER 3) $ 416.66

ANSWER 4) a ) 222.2% , b) 1992

Answer 5 ) FALSE

EXPLANATION

5) The statement is False

Please comment if having any query.
UPVOTE, your help means a lot to me.
I really need your generous support.

Rahul Sunny answered 2 years ago

Suppose that a foreign citizen and resident is considering immigration into the United States and owns...

Suppose that a foreign citizen and resident is considering immigration into the United States and owns both appreciated assets (value greater than basis) and depreciated assets (value less than basis) that she is thinking of selling. What practical tax planning steps should be suggested?

The Bureau of the Census in the United States attempted to count every U.S. resident. Suppose...

The Bureau of the Census in the United States attempted to count every U.S. resident. Suppose that the counts in the table are obtained for four counties in one region. (Give all answers to four decimal places.) County Race/Ethnicity Caucasian Hispanic Black Asian American Indian Monterey 163,000 140,000 25,000 39,000 5,000 San Luis Obispo 190,000 38,000 7,000 9,000 3,000 Santa Barbara 230,000 121,000 12,000 24,000 5,000 Ventura 430,000 231,000 19,000 50,000 8,000 C. If one Hispanic person is selected at...

Find three recent scholarly articles concerning proposals to increase the minimum wage in the United States....

Find three recent scholarly articles concerning proposals to increase the minimum wage in the United States. Using a supply, demand and, in this case, price floor analysis similar to what you did for the rental unit price ceiling, for this assignment write a 3 to 5-page analysis, based on sound economic principles, of the proposal.

10. The nominal salaries paid to the President of the United States, along with data for...

10. The nominal salaries paid to the President of the United States, along with data for the Consumer Price Index (CPI) for various years, are given below. Calculate the real presidential salaries in dollars (not cents) based on year 2000 dollars? Enter you answers in the space provided in the table. Show your work in the space below the table. Nominal Average Annual CPI Real Year Presidential Salary (1982-84 = 100) Presidential Salary 1920 $75,000 20.0 _______________...

Suppose the mean salary for assistant finance professors in the United States is believed to be...

Suppose the mean salary for assistant finance professors in the United States is believed to be $131,600. A sample of 25 professors revealed a mean salary of $142,400 . Assuming the standard deviation is $10,000, can it be concluded that the average salary has increased using a 0.02 level of significance? a. Write down the type of test you will conduct. b. Write down the null and alternative hypotheses. c. Construct the test statistic. d. Conduct the test. e. What...

What does United States GDP measure and what should United States GDP measure?

The increase in obesity in the United States is of great concern to Americans in general...

The increase in obesity in the United States is of great concern to Americans in general and parents in particular. List and explain some of the major causes, both genetic and environmental, of obesity in the United States. Pretend your friend asks you for advice on how to help her 6-year-old son avoid obesity. What would you tell her to do to help her son maintain a normal healthy weight throughout his childhood?

Assume the following information for question 1: United States Mexico Nominal One Year Interest Rate 3%...

Assume the following information for question 1: United States Mexico Nominal One Year Interest Rate 3% 6% Expected One Year Inflation Rate 2% 3% Spot Rate ---- $0.055 One Year Forward Rate ---- $0.050 1.) Does interest rate parity (IRP) hold? Given your answer, does an opportunity for covered interest arbitrage exist for investors residing in either the U.S. or in Mexico? If covered interest arbitrage is possible, explain for whom and then calculate the currency profit (USD or peso)...

In what ways does the United States continue to be imperialistic? Include with your response the link...

In what ways does the United States continue to be imperialistic? Include with your response the link to a current event news article that reflects this answer. (100 words)

Graph the nominal exchange rate of Italy in relation to the United States dollar. Graph time...

Graph the nominal exchange rate of Italy in relation to the United States dollar. Graph time on the horizontal axis and nominal exchange rates on the vertical access. You will want to compare this to Real Exchange rates, so see if you can plot them on the same graph - sometimes the scale is okay, sometimes not so much. Write a few sentences explaining what the graphs are telling you. A ten-year time frame is preferred.