The CPI overestimates inflation because
a. it often ignores the invention of new goods.
b. it always includes discount stores.
c. it allows substitution from more expensive goods to cheaper goods.
d. all of the above.
A
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If a monopolist is producing a level of output at which demand is inelastic, then
A. the firm is not maximizing profit. B. marginal revenue is positive. C. total revenue will decrease if the firm produces more output. D. both a and b E. both a and c
Speculators in the financial market:
A. act as sellers only. B. reduces risk in financial markets. C. act as buyers only. D. buy and sell assets for financial gain.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.
The $1,000 you earned last year on your money market fund is an example of
A. property income. B. inheritance income. C. human capital income. D. transfer income.