Ignoring the issue of whether the CPI overstates the cost of living generally, the fact that the poverty line is adjusted using the overall CPI to adjust for overall inflation means that if the costs of necessities rises
A. faster than the overall CPI, the poverty line is understated.
B. faster than the overall CPI, the poverty line is overstated.
C. slower than the overall CPI, the poverty rate is overstated.
D. slower than the overall CPI, the poverty rate is understated.
Answer: A
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Whether or not a production process shows economies of scale depends on
A. the number of inputs used. B. technology. C. technology and input prices. D. technology and output prices.
While taxing inelastic goods minimizes social costs from taxation, it frequently conflicts with traditional notions of fairness
a. True b. False
After the Civil War, the Southern manufacturing sector
a. declined along with the agricultural sector. b. did not reach pre-War levels until the 20th century. c. recovered much more quickly than the agricultural sector. d. was slow to recover because of slow repairs to the South's transportation network.
Based on the following table, what is average fixed cost when 200 units of output are produced? 
A. $150 B. $2.80 C. $80 D. $1.50 E. none of the above