In the 1970s and 1980s, Walmart entered several markets outside of its home base of Arkansas. As a result, it brought lower prices on a variety of goods. The Bureau of Labor Statistics did not send its shoppers into these new stores until there was a new survey, leading to the CPI
A. understating inflation because they were missing "when people shop."
B. overstating inflation because they were missing "where people shop."
C. understating inflation because they were missing "where people shop."
D. overstating inflation because they were missing "when people shop."
Answer: B
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If the Fed purchases U.S. government securities, gross domestic product:
a. increases because the resulting increase in the interest rate leads to a decrease in investment. b. increases because the resulting decrease in the interest rate leads to an increase in investment. c. decreases because the resulting increase in the interest rate leads to a decrease in investment. d. decreases because the resulting increase in the interest rate leads to an increase in investment. e. decreases because the resulting decrease in the interest rate leads to an increase in investment.
Which of the following is true about increasing cost industries? a. They use a large portion of available specialized input resources in production
b. In order for industry output to expand, the prices of the specialized inputs will increase. c. Expansion of industry output leads to a higher equilibrium price in the long run. d. All of the above are generally true of increasing cost industries.
Jupiter likes moons more than rings and gets marginal utility worth $5 from the last moon, and $2 from the last ring. Saturn prefers rings, getting MU = $3 from the last ring and $1 from moons. Describe a trade that would increase efficiency.
What will be an ideal response?
The sample size for a time series data set is the number of:
A. variables being measured. B. time periods over which we observe the variables of interest less the number of variables being measured. C. time periods over which we observe the variables of interest plus the number of variables being measured. D. time periods over which we observe the variables of interest.