The CPIC ________.
A) overcomes the sources of bias in the CPI by eliminating measures of the goods and services with the most
volatile prices
B) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous
period quantities
C) does not overcome the source of bias in the CPI
D) overcomes the sources of bias in the CPI by always using discount store prices
E) overcomes the sources of bias in the CPI by giving extra weight to the measures of the goods and services with the most volatile prices
B) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous
period quantities
You might also like to view...
An expansionary monetary policy is one that
A) stimulates aggregate supply. B) reduces aggregate supply and aggregate demand. C) stimulates aggregate demand. D) reduces aggregate demand while stimulating aggregate supply.
Which of the following is true?
a. Competitive behavior is present in the market sector but not in the public sector. b. Because candidates for public office represent a bundle of views, there is more ability for individuals to make their preferences count on specific issues than in the market sector. c. When decisions are made democratically, the economic and political power of all individuals will be equal unlike in the market sector. d. The reality of the aggregate consumption-aggregate payment link imposed by scarcity is present in both the market and public sectors.
A country has a comparative advantage in a good if
A. It always has an absolute advantage in the production of the good. B. It can produce more of the good than another country. C. It can specialize only in two goods. D. It can produce a good at a lower opportunity cost relative to another country.
Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A) earning $1,000 in total economic profits and is maximizing economic profits. B) earning $200 in total economic profits and is maximizing economic profits. C) earning zero total economic profits and is not maximizing economic profits. D) incurring $200 in total economic losses and is minimizing economic losses.