Computing the CPI is important because ________
A) it is a very accurate and error-free measure of the cost of living
B) it helps predict spending patterns for particular goods and services
C) government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation
D) all of the above
E) none of the above
C
You might also like to view...
If the MPS = 0.2, the multiplier would be
A) 0.5. B) 1. C) 2. D) 5.
The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies
A) directly with their total household income. B) independently of their total household income. C) inversely with their total household income. D) negatively with their income.
Which of the following statements is true?
A) Price controls strengthen the functioning of the invisible hand. B) Price controls weaken the functioning of the invisible hand. C) Price controls always benefit buyers and make sellers worse off. D) Price controls always benefit sellers and make buyers worse off.
Nonexcludability generates a problem because individuals have an incentive to_____
a. free ride b. profit c. fight d. steal