The base period for CPI calculations is generally 1982-84. In 2005, 50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s
This potential for bias in the CPI is referred to as ________ bias and results in ________.
A) outlet; the CPI overestimating the true change in the cost of living
B) outlet; the CPI underestimating the true change in the cost of living
C) new product; the CPI overestimating the true change in the cost of living
D) net product; the CPI underestimating the true change in the cost of living
C
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Suppose you must pay a non-refundable $200 down payment to order a new item. Pick the true statement below
A) The $200 represents a marginal cost before you commit to the down payment. B) The $200 represents a sunk cost after you've committed to the down payment. C) Both A and B are true. D) Neither A nor B are true.
Cooling systems Carl is the lead engineer on a smart HVAC cooling system that works with minimal energy and is voice activated. Given the revolutionary nature of the system, it took many failed tries to create a system that actually worked, a cost of
$30,000 . Now each unit sells for $6500 and it costs $5000 in raw materials and labor to produce. What costs should Carl take into consideration when deciding to service the order for an additional unit?
If doubling the quantity of inputs more than doubles the quantity of outputs, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.
In 2016, Microsoft will pay corporate income tax to the federal government based on the company's __________________.
A. corporate profits B. excise profits C. optional tax rate D. proportional tax rate