The Consumer Price Index (CPI) measures inflation for every individual
A) True, the weights used in calculating the CPI are adjusted for every individual in the country.
B) True, people all face the same prices and therefore face the same inflation.
C) False, the CPI uses weights based on how much each product represents in the typical household budget.
D) False, the CPI doesn't measure inflation.
C
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If net exports is 100 and the private sector balance is 150, then the government sector balance is
A) -50. B) 50. C) 250. D) 0.
In a perfectly competitive equilibrium with production and trade, which of the following results occur(s)?
A) Pareto-efficiency is obtained. B) The First Welfare Theorem is satisfied. C) There is efficiency in production. D) All of the above.
In 2009, the Nobel Prize in economics was awarded for work on the effectiveness of social norms in the management of commonly held property to:
A. Arthur Pigou. B. Gary Becker. C. Elinor Ostrom. D. Ronald Coase.
A consumer will consume the combination of goods at the crossing point of a budget line and indifference curve
a. True b. False Indicate whether the statement is true or false