As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
a. Substitution bias.
b. Transportation bias.
c. Quality bias.
d. Indexing bias.
a
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If a firm is earning negative accounting profits, it implies
a. That the firm's economic profits are zero b. That the firm's economic profits are positive c. That the firm's economic profits are negative d. More information is needed to conclude about economic profits
According to the law of demand, a higher rate of return (that is, a higher price) will decrease
a. supply. b. demand. c. quantity supplied. d. quantity demanded.
If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good exchanged? Price Quantity
A. No change No change B. Increase Increase C. Increase Decrease D. Decrease Increase E. Decrease
Average GDP per person is
A. A measure of the economic growth rate of a country. B. Also known as per capita GDP. C. Also known as GDP. D. The value of the factors of production used to produce output in a country.