Fixed weight indexes can not account for new goods.
Answer the following statement true (T) or false (F)
True
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A labor contract provides for a first-year wage of $10 per hour, and specifies that the real wage will rise by 3 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.07 in the second year. What dollar wage must be paid in the second year?
A. $10.90 B. $10.70 C. $11.02 D. $10.30
In the short-run if there is a surplus in the market for a product, the rationing function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the supply of the product. C) an increase in the market price of the product. D) a decrease in the market price of the product.
A constant-cost industry will have
A) a perfectly elastic long-run supply curve. B) a perfectly inelastic long-run supply curve. C) an upward sloping demand curve in the long run. D) an upward sloping supply curve in the long run.
Which of the following best defines the situation where one firm's research yields knowledge that is used by society as a whole?
a. social cost b. opportunity cost of technology c. internalization of an externality d. technology spillover