If you believe the economy is self-regulating, you are more likely to be a(an) __________ than a(an) __________
A) nonactivist; activist
B) Keynesian; monetarist
C) activist; nonactivist
D) advocate of fiscal policy; advocate of monetary policy
E) b and d
A
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The CPIC ________.
A) overcomes the sources of bias in the CPI by eliminating measures of the goods and services with the most volatile prices B) overcomes the sources of bias in the CPI by incorporating substitutions and using current and previous period quantities C) does not overcome the source of bias in the CPI D) overcomes the sources of bias in the CPI by always using discount store prices E) overcomes the sources of bias in the CPI by giving extra weight to the measures of the goods and services with the most volatile prices
In a price system, changes in prices
A. signal to everyone in the system what goods are relatively more or less scarce. B. signal to policy makers what goods should and should not be taxed more. C. make it difficult for the system to function well. D. imply that people have made mistakes in the past.
Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P 1 , the monopolist would produce output:
A. Q 2 and realize a normal profit.
B. Q 4 and realize a normal profit.
C. Q 3 and realize an economic profit.
D. Q 4 and realize a loss.
GDP does not directly include intermediate goods because
A) intermediate goods are not valuable. B) intermediate goods are not useful to consumers. C) that would count the intermediate goods twice. D) that would understate the true size of GDP.