The consumer price index (CPI):
a. adjusts for changes in product quality.
b. includes separate market baskets of goods and services for both base and current years.
c. includes only goods and services bought by typical urban consumer.
d. uses current year quantities of goods and services.
c
You might also like to view...
The combinations of gasoline and coffee along one of Sam's indifference curves are combinations
A) which require the same total expenditure. B) that he can afford with his $60.00 income. C) among which he is "indifferent." D) that give him the same marginal rate of substitution.
The point where the indifference curve is tangent to the budget line
A) is the best affordable point. B) is where the marginal rate of substitution exceeds the relative price by as much as possible. C) is a point on consumer's demand curve. D) All of the above answers are correct.
Refer to Figure 17-3. In Panel A, at low wages (segment i)
A) labor suppliers demand more leisure as wages increase. B) the substitution effect outweighs the income effect. C) the income effect outweighs the substitution effect. D) the substitution effect offsets the income effect.
Class stratification refers to a situation in which people are trapped in a particular income rank
Indicate whether the statement is true or false