The quality adjustment bias of the CPI refers to the failure of statisticians to:
A. allow for the possibility that consumers switch stores at which they shop.
B. allow for the possibility that consumers switch from products whose prices are rising.
C. take into account improvements in goods and services.
D. take into account price changes in goods and services.
Answer: C
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The Sherman Antitrust Act:
a. prohibited restraint of trade. b. created the Federal Trade Commission. c. prohibited fraudulent advertising. d. regulated the railroads.
Which of the following is not a necessary characteristic for a tax to qualify as a good tax?
a. justifiably b. convenience c. being economical d. equality
Direct controls are generally much more costly than emissions taxes because
a. under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently. b. emissions tax per unit of output is higher than the per-unit direct control program cost. c. government cannot legally levy emissions taxes that are as high. d. firms disregard emissions taxes.
Refer to the graph shown. The welfare cost of monopoly is given by:
A. area A. B. area B. C. areas A and B. D. areas C and D.