Answered: 6. In the base year the retail price…

6. In the base year the retail price index is always 100. F 7. Inflation is taking place when prices on average are falling. F 8. National Insurance contributions represent a form of direct tax. T F

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 6SCQ: The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the...

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Question

Can you answer questions 6,7,8

6.
In the base year the retail price index is always 100.
7.
Inflation is taking place when prices on average are falling.
F
National Insurance contributions represent a form of direct tax.
F
9.
The stock exchange influences the way in which savings are invested.
F
10. A finance house is an example of a financial institution.
F
TOTAL MARKS I101
8.

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