As Chief Statistician for the Municipality, You Want to Compute

question 55

Multiple Choice

As chief statistician for the municipality, you want to compute and publish every year a special- purpose index, which you plan to call Index of Municipal Business Activity. Three series seem to hold promise as the basis for the index; namely, the price of wheat, the number of new automobiles sold and the rate of money turnover for the municipality (published by a local bank) . Arbitrarily you decide that money turnover should have a weight of 60 percent; number of new automobiles sold, 30 percent; and the price of wheat, 10 percent. What is the Index of Municipal Business Activity for 1981 (the base year) and for 2000?

• A) 100 for 1981, 139 for 2000
• B) 139 for 1981, 100 for 2000
• C) 100 for 1981, 61 for 2000
• D) 100 for 1981, 100 for 2000
• E) 100 for 1981, 160 for 2000

Comprehend how market equilibrium is achieved and its significance to total surplus.

Identify factors leading to market failure and understand their implications on surplus and market efficiency.

Understand the role of property rights in effective market functioning and their impact on market outcomes.

Describe scenarios where government intervention affects surplus distribution and market efficiency.

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Definitions:

Oral Suspension

A liquid mixture in which a solid substance is suspended, often used in medication for easier consumption.

Mg

An abbreviation for magnesium, a chemical element vital for human health, involved in over 300 biochemical reactions in the body.

Scored Tablets

Medication in pill form with a line (or score) that allows for easy and accurate splitting.

Liter

A metric unit of volume equal to one cubic decimeter or 1,000 cubic centimeters, commonly used to measure liquids.