As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
A. substitution bias
B. transportation bias
C. quality bias
D. indexing bias
Answer: A
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A PPF, such as the one above, that bows outward illustrates
A) decreasing opportunity cost. B) increasing opportunity cost. C) that technology is improving. D) that productivity is falling.
A public good:
a. is rivalrous in consumption and excludable b. in nonrivalrous in consumption and nonexcludable c. must be produces by government d. both b. and c.
Hannah runs a manicuring shop. Currently, her shop provides 50 manicures per day, and the shop's daily total cost (TC) is $600. If Hannah decides to provide 25 more manicures per day, the total cost will rise by $75 per day. If Hannah does decide to increase production by this much, what will the shop's daily average total cost (ATC) be?
a. $12.00 b. $3.00 c. $8.00 d. $9.00 e. $13.50
If a Pigovian tax is too large, the resulting:
A. outcome will not maximize surplus. B. quantity will be too high. C. outcome will still be efficient. D. All of these statements are true.