Question

Question 69 0.5 pts 69. In a market economy, who makes the decisions that guide most economic activity? O a. firms only b. households only O c. firms and households O d. government

Answer 1

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Solution,

69).

the correct option is c). households and firms

in the market economy, demand and supply play an imp role that decide the market price and quantity where demand based on households and supply based on firms.

73).

$CPI = \frac{cost\, in\, present\, year}{base\, year\, cost }*100$

Cost in 2012 = (24*5)+(9*10) = 120 + 90 = 210

Cost in 2013 = (30*5)+(11*10) = 150 + 110 = 260

Cost in 2014 = (32*5)+(12*10) = 160 + 120 = 280

$CPI \, in \, 2012 = \frac{210}{280}*100 = 75$

CPI in 2013 260 * 100 280 92.8

$CPI \, in \, 2014 = \frac{280}{280}*100 = 100$

the correct option is a). 75 in 2012, 92.8 in 2013 and 100 in 2014.