If the income elasticity of demand is less than 1.0, it means it is an inferior good
a. True
b. False
Indicate whether the statement is true or false
False
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What is the difference between endogenous and exogenous variables? In the equilibrium condition of PPP, which variables are endogenous and which are exogenous?
What will be an ideal response?
Which one of the following groups has a below-average incidence of poverty?
a. divorced or separated persons b. African Americans and other minorities c. families headed by a female d. persons between the ages of 35 and 54
For this question, assume that policy makers are pursuing a fixed exchange rate regime and that output is initially greater than the natural level of output. The economy will tend to move toward the natural level of output when which of the following occur?
A) an increase in the price level B) a devaluation of the currency C) a reduction in the domestic interest rate D) an increase in the foreign price level E) none of the above
The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation, but ________ quality increases. This causes the CPI to ________ the cost of the market basket
A) also; understate B) also; overstate C) not; understate D) not; overstate