A reason why the CPI overstates the cost of living is it
A. makes no attempt to ascertain what average people buy.
B. makes no attempt to control for substitution to cheaper goods.
C. makes no attempt to update the market basket.
D. only measures the effects of inflation on the poor.
Answer: B
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The $14.3 billion U.S. craft beer market is being subsidized at local, state, and even federal government levels, and the taxpayers pay for these subsidies. Economists know that these subsidies make Americans poorer on the whole
Why is it so difficult for U.S. taxpayers to end these subsidies for the craft beer market, a market which has been described as "booming" and "highly successful"?
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price
What is the revenue collected from the fixed fee portion of the price? A) $10,240 B) $7,870 C) $2,560 D) $1,440
Which of the following activities can create a beneficial externality?
a. Parking cars on the road in front of your house. b. Encouraging children to play on the field opposite a hospital. c. Planting colorful flowers in your garden. d. Practicing and playing drums in the morning hours.
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint is CD. If the price of bell peppers increases, Bill's new budget constraint is
A. EF. B. AD. C. BE. D. AO.