Post-World War II inflation rates, as measured by the CPI
a) are overestimated due to the inability to measure quality improvements
b) are underestimated due to the exclusion of import prices
c) are not comparable across decades due to decennial changes in the base year
d) have tended to move in the opposite direction of inflation rates as measured by the GDP deflator
e) have become increasingly accurate as technology has improved
a) are overestimated due to the inability to measure quality improvements
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Activities that create water pollution are best associated with:
A. inferior goods. B. positive externalities. C. negative externalities. D. normal goods.
A change in the wage causes a shift in the supply curve for labor and a
A) shift along the demand curve for labor. B) shift in the demand curve for labor. C) rotation in the demand curve for labor. D) It cannot be determined by the information provided.
Economist John Maynard Keynes once said, "In the long run, we are all dead." Keynes was likely:
A. in favor of using fiscal policy. B. against the use of fiscal policy. C. in favor of allowing the economy to always correct itself. D. Economy never achieves its long run equilibrium.
A publishing house is using 400 printers and 200 printing presses to produce books. The printers' wage rate is $20 and the price of a printing press is $100. The last printer added 20 books to total output, while the last printing press added 50 books to total output. The publishing house
A. could produce the same number of books at a lower cost by using more printing presses and fewer printers. B. should use more printing presses because they are more productive than printers. C. is using the cost-minimizing combination of printers and printing presses. D. could produce the same number of books at a lower cost by using more printers and fewer printing presses. E. should use more printers because they are cheaper than printing presses.