As new goods and services become available the basket of goods used to calculate the CPI:
A. immediately changes to reflect them.
B. doesn't change until 75 percent of urban consumers use them.
C. never changes to reflect them.
D. periodically is updated in order to reflect the changes.
D. periodically is updated in order to reflect the changes.
You might also like to view...
Graphically, producer surplus is the area:
a. above the equilibrium price and below the demand curve. b. below the equilibrium price and below the supply curve. c. above the supply curve and below the demand curve. d. below the equilibrium price and above the supply curve. e. below the equilibrium price and above the demand curve.
If the economy's real GDP is growing at 3 percent each year and velocity is constant, for the price level to increase:
a. the money supply would have to grow at more than 3 percent per year. b. the money supply would have to grow at exactly 3 percent per year. c. the money supply would have to grow at less than 3 percent per year. d. the money supply would have to remain stable.
Network effects are:
A. increases in the value of a product to each user, including existing users, as the total number of users rises. B. reductions in per unit production cost as firms learn by doing. C. increases in demand resulting from products being mentioned positively in a television program. D. the change in real GDP resulting from a change in investment or government spending.
Legal attempts to arrange one's financial decisions so as to pay the least tax possible are known as
a. tax evasion b. logrolling c. tax avoidance d. rent seeking e. underreporting