Which of the following statements about the CPI is (are) correct?
i The only significant bias in the CPI is the commodity substitution bias.
ii. The CPI probably overstates inflation by 1.1 percentage points a year.
iii. As far as the bias in the CPI is concerned, the new goods bias and the outlet substitution biases are irrelevant.
A) i only
B) ii only
C) iii only
D) i and iii
E) i and ii
B
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One reason more sport utility vehicles (SUVs) are driven in the United States than in Europe is
A) different marginal rates of substitution. B) different marginal rates of transformation. C) the United States hasn't had a recession since 2000-2001. D) Either A or B
Which of the following should not be on a list of things you should do to get an honest evaluation?
A. Have a list of creative solutions to problems that you have encountered. B. Take your manager to dinner the night before evaluations are due. C. Illustrate how your actions will improve the company next year. D. Show how your output influenced the profitability of your division.
We can measure the profits earned by a firm in a competitive industry as
a. (P - ATC) × Q. b. (P - MC) × Q. c. MR × MC. d. (MC - ATC) × Q.
Which of the following describes a situation in which demand must be inelastic?
A. Total revenue decreases by 10 percent when the price of spats rises by 10 percent. B. Total revenue decreases by less than 10 percent when the price of spats rises by 10 percent. C. Total revenue increases by more than 10 percent when the price of spats rises by 10 percent. D. Total revenue decreases by $10 when the price of spats rises by $10.