One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI:
a. uses current year quantities of goods and services.
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 consumers.
d. is bias free.
c
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The following are all final goods EXCEPT
A) flour used by the baker to make cupcakes. B) bread eaten by a family for lunch. C) pencils used by a 6th grader in class. D) Nike shoes used by a basketball player. E) a computer used by Intel to design new computer chips.
Complete Milton Friedman's famous proposition: "Inflation is always and everywhere a ________ phenomenon."
A) monetary B) political C) policy D) budgetary
Which of the following is NOT an example of adverse selection?
A) A family with a home ten feet from a large river buys flood insurance. B) A company uses the proceeds of a new stock sale to build an unnecessarily luxurious new headquarters. C) A terminal cancer patient buys life insurance. D) A company in serious financial trouble offers to pay you 30% on a loan.
Think of a firm that has a monopoly producing milk. The firm's demand curve is
a. identical to the demand curve for milk facing the industry b. identical to its marginal revenue curve c. tangent to the firm's ATC curve d. tangent to its marginal revenue curve e. more elastic than the demand curve of any perfectly competitive firm producing milk