An increase in the Consumer Price Index indicates that
a. the real income of households is increasing.
b. the purchasing power of the dollar is increasing.
c. the cost of buying the typical bundle of goods consumed by households is increasing.
d. the real net worth of consumers is increasing.
C
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Figure 15-1
Figure 15-1 portrays conditions in the monopolized weezil industry. From the diagram, the production of weezils
A. must cause a detrimental externality. B. must cause a beneficial externality. C. must cause either a detrimental or a beneficial externality, more information is needed to determine which one. D. may or may not cause an externality.
Dividends, retained earnings, and corporate income taxes sum to which of the income categories in the income approach to computing GDP?
A. corporate profits B. net interest C. indirect business taxes D. compensation of employees
The French highly value domestic production of traditional French cheese made by high-cost, traditional production methods. According to the specificity rule, the most efficient policy tool to protect this traditional industry would be
A. to impose an import tariff on cheeses produced in other countries. B. to tax French exports of non-traditional cheeses. C. to impose an import ban on cheeses produced in other countries. D. to provide a production subsidy to the domestic firms.
The discovery of new oil deposits will cause
A. both the long-run and the short-run aggregate supply curves to shift to the right. B. the short-run aggregate supply curve to shift to the right, but not the long-run aggregate supply curve. C. the long-run aggregate supply curve to shift to the right, but not the short-run aggregate supply. D. the long-run aggregate supply curve to shift to the right and the short-run aggregate supply curve to shift to the left.