The CPI is a measure of the
What will be an ideal response?
average prices paid by consumers for a fixed basket of goods and services
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Who would receive payments from the government under a negative income tax system?
A. Everyone B. Only people with no earnings C. Only people with incomes below a certain level D. Only people with incomes above a certain level
What is a gold standard?
What will be an ideal response?
The distribution process performed by the price system is not as efficient as the distribution process of central planners.
Answer the following statement true (T) or false (F)
In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc Best Drinks charges high-end customers like 5-star hotels a much higher price than it charges local pubs. This discrimination is possible only if:
a. price discrimination is legal in Talisman. b. we assume Best Drinks can prevent pub owners from buying liquor and selling it to 5-star hotels. c. consumers in Talisman have similar price elasticities of demand for liquor. d. we assume Best Drinks is a natural monopoly.