Suppose That Your Income During Year X Was $50,000, and the CPI

question 37

Multiple Choice

Suppose that your income during Year X was $50,000, and the CPI for Year X was 150 (base year = Z. Back in Year Z your income was $30,000. Has your real income increased or decreased from Z to year X? By how much?

• A) Increased by $5,000.
• B) Increased by $3,333.
• C) Unchanged.
• D) Decreased by $3,333.
• E) Decreased by $5,000.

Comprehend the characteristics and examples of each of the four types of goods discussed.

Understand the concept of public goods, including the free-rider problem and its implications for the provision of public goods.

Recognize the role of government in subsidizing basic research and providing public goods due to market failures.

Comprehend the challenges and methods of cost-benefit analysis in evaluating public projects.

---

Definitions:

Intentional Interference

Deliberate actions taken by one party to impede the contractual relations of another party causing economic harm.

Disparagement

Disparagement involves making damaging statements or publications about someone's business or products, potentially harming their reputation or commercial interests.

Unexpected Heart Attack

A sudden and unforeseen event of a heart attack, occurring without any prior warning signs.

Liability

Legal responsibilities or obligations that arise from actions, transactions, or circumstances.