Which price index tends to understate the impact of price changes on consumers?
A) Chain-weighted index
B) Laspeyres index
C) Paasche index
D) Ideal cost-of-living index
C
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The balance of trade is the value of:
A. exports minus the value of imports. B. imports minus the value of exports. C. total goods purchased by the U.S. from abroad. D. total goods sold by the U.S. to parties abroad.
Martha routinely has her prescriptions filled at her local SVC pharmacy. Each time that Martha goes to pick up a prescription, there is some problem and Martha has to return to the pharmacy later to get the prescription. Martha finds these return trips very annoying and time-consuming, but continues to request that her doctor send her prescriptions to this pharmacy even though there are several
other options in her town. Which of the following is correct? a. Economists would say that Martha is behaving rationally. b. Martha's behavior appears to exhibit inertia. c. Martha's behavior is inconsistent over time. d. Martha gives too much weight to a small number of vivid observations.
An industry with a Herfindahl-Hirschman index of 1,000 would have ____ firm(s).
A. 1 B. 10 C. 100 D. 1,000
Inflation is best defined as
A. a sustained increase in the price of ALL goods and services in an economy. B. a sustained increase in the average of all prices of goods and services in an economy. C. a sustained increase in the price of a single good or service. D. a relative price increase.