Which of the following is a deficiency of the regular (or traditional) consumer price index (CPI) as a measure of the cost of living?
a. The CPI fails to make any adjustment for changes in the price of housing.
b. The CPI only measures changes in the prices of food, clothing, and energy.
c. The CPI fails to maintain the quantities of the typical bundle of goods purchased by consumers constant over a lengthy time frame.
d. The CPI does not adjust regularly for the fact that consumers will shift their spending away from goods that become more expensive.
D
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Using the data in the above table, gross domestic product as calculated by the income approach equals ________
A) $2,333 B) $2,592 C) $2,925 D) $2,205
Paul runs a shop that sells printers. Paul is a perfect competitor and can sell each printer for a price of $300
The marginal cost of selling one printer a day is $200; the marginal cost of selling a second printer is $250; and the marginal cost of selling a third printer is $350. To maximize his profit, Paul should sell A) one printer a day. B) two printers a day. C) three printers a day. D) more than three printers a day.
A firm could persuade the sales agent to accept profit based compensation if the new commission is
a. Positive sales biased b. Negative sales biased c. Sales neutral d. None of the above
Which of the following is an example of horizontal equity?
a. A wealthy individual should pay more taxes than a lower-income individual b. A wealthy individual should have a greater average tax rate than a middle-income individual c. Two persons with identical incomes should pay the same taxes d. A local government decides to impose taxes based on the benefits principle