Which of the following is not a reason that the CPI overstates the cost of living?
A. The location of typical purchases is not adequately updated.
B. There are too infrequent updates of the market basket.
C. Substitution into nearly-equivalent goods is assumed to be more common than it is.
D. Quality improvements are not adequately incorporated.
Answer: C
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In a perfectly competitive market,
a. no firm can earn an economic profit b. it is possible for each firm to earn an economic profit in the short run c. firms determine the market price and consumers determine the market quantity d. consumers determine the market price, and firms decide how much to produce at that price e. the market demand curve is a horizontal line at the market price
If the reserve requirement is 10%, and a depositor withdraws $1,000 from a bank, the bank's excess reserves will change by:
a. -1,000 b. +1,000 c. -100 d. -900 e. +900
Historically, many businesses have preferred specialized task assignment for employees over broad task assignments. Why has this been the case?
What will be an ideal response?
A bank's reserves include:
A. the bank's loan portfolio. B. U.S. Treasury Securities. C. vault cash. D. U.S. Treasury bills and vault cash.