The currently used method for calculating the CPI
A) accounts for people increasing consumption of a good that falls in relative price.
B) probably overstates inflation by about 1 percentage point.
C) has no effect on government expenditures.
D) None of the above answers are correct.
B
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Use the figure below to answer the following question.
What area represents society's total surplus after the government imposes the excise tax on the market?
A. triangle $1c$9 plus triangle $21a$13 B. triangle abc C. square $13ac$9 plus triangle abc D. triangle $1c$9 plus triangle $21a$13 plus rectangle $13ac$9
?Long-run economic growth in the United States is best measured using
Transfer payments:
A. involve programs such as Social Security and welfare. B. do not show up in GDP. C. are payments from government accounts to individuals for programs that do not involve a purchase of goods or services. D. All of these are true.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of BrushesOpportunity Cost of Brushes in Terms of CombsNumber of CombsOpportunity Cost of Combs in Terms of BrushesJ0 4 K10 3 L17 2 M21 1 N23 0 Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, what is the opportunity cost of producing at point M rather than point N?
A. 1 brush. B. 21 combs. C. 2 brushes. D. 23 combs.