To which of the problems in the construction of the CPI is the creation of the mobile phone most relevant?
a. substitution bias
b. introduction of new goods
c. unmeasured quality change
d. income bias
b
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Seasonal adjustment
A) should never be used. B) is rarely used. C) is a common characteristic of macroeconomic time series in wide use. D) is not used by modern macroeconomists.
If cyclical unemployment is negative, then
A) the actual unemployment rate is below the natural rate of unemployment. B) the natural rate of unemployment is getting smaller. C) there have been some errors in classifying the type of unemployment experienced by some people. D) structural unemployment must be increasing.
Diminishing returns to physical capital means that when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to
What will be an ideal response?
Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $32 B. $7 C. $9 D. $40