The Bureau of Labor Statistics periodically updates the base year in the CPI because
a. nominal GDP changes over time
b. of changes in the importance of goods in the consumer basket
c. real GDP changes over time
d. the GDP deflator is periodically updated
e. prices change over time
B
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The following diagram shows the rate of inflation each year during a five year span. Use this diagram to answer the next question.
In which year did prices go down?
A. Year 1 B. Year 2 C. Year 3 D. Year 4
Which of the following would shift the demand curve for new textbooks to the right?
A) A fall in the price of paper used in publishing texts B) A fall in the price of equivalent used textbooks C) An increase in the number of students attending college D) A fall in the price of new textbooks.
Economies of scale can
A) result in an increasing cost industry. B) cause input prices to drop. C) prevent the entry of new firms into a market. D) reduce the rate of return which the firm may earn.
If a consumer is buying three goods A, B, and C, then she will be in equilibrium when total utility from each good is equal
a. True b. False Indicate whether the statement is true or false