The substitution of one good for another by consumers:
A. is not captured by the CPI.
B. is captured by the CPI.
C. due to price changes is captured by the CPI.
D. due to changes in tastes/preferences is captured by the CPI.
Answer: A
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Which of the following statements best defines hyperinflation?
A) It is a situation when the annual rate of inflation in an economy is between 20% to 50%. B) It is a situation when the annual rate of inflation in an economy exceeds 50%. C) It is a situation when the annual rate of inflation in an economy is between 10% to 20%. D) It is a situation when the annual rate of inflation in an economy is between 0% to 10%.
According to the graph in the figure above, which year experienced the most rapid change in employment?
A) Year 2 B) Year 3 C) Year 4 D) Year 5
In macroeconomics, which of the following topics would most likely be studied?
A. Bob's budget B. Nike's costs of production C. The growth rate of the oil industry D. Unemployment in Mexico.
Which of the following is an example of an externality?
A. Drug abuse affecting David’s health B. Sara taking a break from work C. A transaction between two parties, affecting them alone D. Tom’s smoking affecting his roommate’s health