Which of the following is NOT a criticism of the CPI?
A. The CPI does not account for the way consumer substitute less expensive items for higher priced items.
B. The CPI ignores changes in consumption patterns that occur between years in which it revises the index.
C. The CPI ignores the changes of prices of goods that firms produce and sell to each other.
D. The CPI ignores successful new products until long after they have been introduced.
Answer: C
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Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, ________ has an absolute advantage in selling cars and ________ has an absolute advantage in selling trucks.
A. Joe; Joe B. Ralph; Larry C. Larry; Joe D. Larry; Ralph
Protectionism refers to:
A) subsidizing imports. B) reduction of trade barriers. C) increased export of goods and services. D) reducing the competition faced by domestic firms.
Refer to the above figure. The market supply and demand curves in a perfectly competitive market intersect at $4. Which of the graphs represent the situation for an individual firm?
A) Panel A B) Panel B C) Panel C D) Panel D
Because deadlines are frequently missed, budgets typically run from year to year based on _____
a. continuing resolutions b. budget resolutions c. congressional suggestions d. the suggestions of the President e. the suggestions of the President's Council of Economic Advisers