One of the widely-acknowledged problems with the consumer price index (CPI) as a measure of the cost of living is that the CPI
a. fails to account for consumer spending on housing.
b. accounts only for consumer spending on food, clothing, and energy.
c. fails to account for the fact that consumers spend larger percentages of their incomes on some goods and smaller percentages of their incomes on other goods.
d. fails to account for the introduction of new goods.
D
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Changes in technology over time will result in
A) a more inelastic supply curve. B) a more elastic supply curve. C) a unitary elastic supply curve. D) no change in the elasticity of supply.
Which of the following is true when there is a recessionary gap?
a. Real output exceeds the natural level of real output b. Unemployment exceeds the natural rate of unemployment. c. Employment exceeds full employment. d. All of the above are true when there is a recessionary gap.
The costs associated with the negotiation and enforcement of an agreement are
A) property costs.
B) resource factor costs.
C) transaction costs.
D) attorney fees.
Which of the following is NOT necessary in order for a monopolist to practice effective price discrimination?
A) The marginal cost of providing the same good to different groups of buyers must be different. B) The monopolist must be able to segregate its market into different submarkets. C) The buyers in various markets must face different price elasticities of demand. D) The monopolist must have a downward sloping demand curve.