The Consumer Price Index (CPI) measures the changes of the
A) Prices paid by consumers for a fixed market basket of consumer goods and services.
B) Quantities of a fixed market basket of goods produced by businesses.
C) Lowest prices paid by consumers for a fixed market basket of consumer goods and services.
D) Prices paid by all businesses for a fixed market basket of production resources.
Answer: A) Prices paid by consumers for a fixed market basket of consumer goods and services.
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The short run is a period of time in which
A) the quantity of at least one factor of production is fixed. B) the amount of output is fixed. C) prices and wages are fixed. D) nothing the firm does can be altered.
A union is a type of cartel
a. True b. False Indicate whether the statement is true or false
Suppose you value a special watch at $100 . You purchase it for $75 . On your way home from class one day, you lose the watch. The store is still selling the same watch, but the price has risen to $85 . Assume that losing the watch has not altered how you value it. What should you do?
a. Pay the $85 to buy the watch. b. Wait to see if the watch goes on sale. If the price drops to $75 or less, buy the watch. c. Wait to see if the watch goes on sale. If the price drops to $25 or less, buy the watch. d. Do not buy the watch.
QN=81 (17792) When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.