A reason why the CPI overstates the cost of living is it
A. only measures the effects of inflation on the poor.
B. makes no attempt to update the market basket.
C. updates the market basket infrequently, thereby missing the steep price decline in the early adoption period.
D. makes no attempt to ascertain what average people buy.
Answer: C
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Bank equity is also referred to as
A) bank deposits. B) bank reserves. C) bank capital. D) bank assets.
Which of the following is the most efficient way to reduce pollution emissions?
a. emission standards that cap allowable pollution b. government pollution charges or taxes c. legislated regulations limiting the quantity of emissions allowed by each firm d. enforcement of property rights, when those rights are well-defined and transaction costs are low
Which of the following best explains why the monopolist's marginal revenue is less than the sales price?
a. To sell more units, the monopolist must reduce price on all units sold. b. As the monopolist expands output, the average total cost will decline. c. The monopolist charges each consumer the highest possible price. d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
What was the total revenue generated before the price change?
a. $140
b. $240
c. $560
d. $700