Table 16-4 the Table Below Pertains to Wrexington,an Economy in Which the Which

question 364

Multiple Choice

Table 16-4
The table below pertains to Wrexington,an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys.

-Refer to Table 16-4.If the base year is 2004,then the CPI

• A) increased from 2004 to 2005 and increased from 2005 to 2006.
• B) increased from 2004 to 2005 and decreased from 2005 to 2006.
• C) decreased from 2004 to 2005 and increased from 2005 to 2006.
• D) decreased from 2004 to 2005 and decreased from 2005 to 2006.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than others.

Production Possibilities

The various combinations of goods and services that an economy can produce given its available resources and technology.

Domestic Demand

The total demand for goods and services within a country.