The principal reason why the chain-weighted index for GDP and the CPI both overstate actual changes in prices is that
A) the basket of goods purchased by consumers never changes.
B) price data is often inaccurate.
C) it is hard to measure quality changes.
D) all of the above
C
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When the U.S. interest rate rises relative to that in other counties, in the foreign exchange market the demand for U.S. dollars ________ and the supply of U.S. dollars ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Explain how a "leaky bucket" can be used to illustrate the utilitarian argument that governments should not attempt to completely equalize individual incomes
When a brand name drug’s patent protection expires, many generic producers are usually ready to enter the market. These firms’ products are close substitutes, they have similar production technologies, the regulatory hurdles to enter are not so great, and, within a few months, there are plenty of rivals. What would you predict for the profitability during these first few months after generic drug entry?
What will be an ideal response
According to the text, productivity is driven by all of the following EXCEPT:
A. physical capital. B. human capital. C. technological progress. D. natural resources.