The CPI differs from the GDP deflator in that
a. the CPI is an inflation index, while the GDP deflator is a price index.
b. substitution bias is not a problem with the CPI, but it is a problem with the GDP deflator.
c. increases in the prices of foreign produced goods that are sold to U.S. consumers show up in the GDP deflator but not in the CPI.
d. increases in the prices of domestically produced goods that are sold to the U.S. government show up in the GDP deflator but not in the CPI.
d
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A person who starts practicing poisonous snake charming after signing a contract with a health insurance company is an example of
A) moral hazard. B) adverse selection. C) signaling. D) screening.
In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic profits are zero. (iii) price equals minimum marginal cost. (iv) price equals minimum average total cost
a. (i) and (ii) only b. (ii) and (iii) only c. (ii) and (iv) only d. (i), (ii), (iii), and (iv)
The natural rate of unemployment (i) is the economy's desirable level of unemployment. (ii) arises from a single problem that has a single solution. (iii) is the amount of unemployment that does not go away on its own
a. (i) and (ii) only
b. (iii) only
c. (i), (ii), and (iii)
d. None of the above is correct.
A Nash equilibrium is a condition that:
A. describes a set of circumstances in which no player can improve her payoff by unilaterally changing her own strategy, given the other players' strategies. B. results in the highest payoff to a player regardless of the opponent's action. C. randomizes over two or more available actions in order to keep rivals from being able to predict a player's action. D. guarantees the highest payoff given the worst possible scenario.