Which of the following is the most accurate statement about the effects of quality change on the CPI?
a. Even though the BLS adjusts the prices of products in the CPI basket when the quality of the products changes, changes in quality are still a problem because quality is so hard to measure.
b. Because the BLS adjusts the prices of products in the CPI basket when the quality of the products changes, changes in quality are no longer a problem for the CPI.
c. The BLS does not adjust the CPI for quality changes.
d. Most economists believe that changes in the quality of goods included in the CPI basket do not bias the CPI as a measure of the cost of living.
a
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Which of the following reasons explains how second-degree price discrimination works?
A. In order to get people to buy more of a good you typically have to lower the price because of the law of demand. B. The price of the good or service is what the consumers are willing and able to pay, which increases profits. C. People will buy more of a good when they have relatively inelastic demands for the good. D. Producers have increasing average total costs as they produce more of a good.
According to the article, we can conclude that the standard of living
A) is higher in Brazil because its citizens feel more control over their lives and have experienced job and wage growth. B) is higher in Japan because their life expectancy is longer. C) is higher in Japan because its GDP is higher. D) might be higher in Japan because it has a higher per capita real GDP but other factors such as Brazilians' satisfaction with their lives and economic growth should be considered when determining economic well-being.
If real GDP grows faster than nominal GDP, it is a sign that
A) inflation is negative. B) there is no inflation. C) there is inflation, but little. D) there is galloping inflation.
An advance in technology which increases labor productivity will shift the:
A. labor demand curve to the left. B. MFC curve to the left. C. MP curve downward. D. labor demand curve to the right.