The CPI somewhat overstates changes in the cost of living because it does not allow for substitutions that consumers might make in response to price changes.
Answer the following statement true (T) or false (F)
True
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The relationship between the unemployment rate and inflation is studied under:
A) microeconomics. B) macroeconomics. C) behavioral economics. D) international economics.
Which of the following was an outcome of uncoordinated oil drilling in Huntington Beach, California?
a. The entire oil present underground had been extracted within few years. b. Underground oil pressure had increased due to excessive drilling leading to an oil spill into the adjacent sea. c. A majority of the oil could not be drilled out as low underground pressure prevented oil from reaching the surface. d. The oil belt suffered frequent earthquakes as excessive drilling had loosened the soil bonding.
Time lags
What will be an ideal response?
Refer to the normal-form game of bargaining shown below.Union?Management??$0$250$500?$0($0, $0)($0, $250)($0, $500)?$250($250, $0)($250, $250)(-$10, -$10)?$500($500, $0)(-$10, -$10)(-$10, -$10)Suppose that management and the union are bargaining over how much of a $500 surplus to give to the union. It is assumed that the surplus can only be split into $250 increments. Furthermore, negotiations are set up such that management and the union must simultaneously and independently write down the amount of surplus to allocate to the union. The payoff structure to this one-shot bargaining game is listed in Figure 10-16. The number of inefficient outcomes resulting from the bargaining game is:
A. 3. B. 8. C. 5. D. 6.