A problem with the CPI is:
a. it has a quality bias and assumes product quality is constant over time.
b. it accounts for more buying at discount stores.
c. it under-estimates inflation.
d. it assumes product quality that is too high.
a
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Which of the following is more liquid?
A. A privately held company's stock B. A publicly held company's stock C. A house D. A rare painting
The best measure of the average standard of living is:
a. yearly population increase. b. real GDP per capita. c. consumer credit balances. d. the overall level of investment.
Consumer surplus
What will be an ideal response?
A debit card
A. is considered part of M1. B. is just like credit card in that you pay for it with a check at a later time. C. purchase takes money out of your checking account. D. is considered part of M2.