The Consumer Price Index is due for a major overhaul mainly because it is
A. overestimating the annual inflation rate by over 2%.
B. overestimating the annual inflation rate by over 1%.
C. underestimating the annual inflation rate by under 2%.
D. underestimating the annual inflation rate by over 2%.
B. overestimating the annual inflation rate by over 1%.
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is Alice's marginal revenue function?
A. MR = 100 - 0.005QK - 0.01QA B. MR = 100 - 0.005QA - 0.005QK C. MR = 100 - 0.005QA - 0.01QK D. MR = 100 - 0.005QK - 0.005QA
Discuss the components of GDP using the expenditure approach
Evidence suggests that the marginal social cost of pollution reduction: a. increases as pollution reduction increases
b. remains constant as pollution reduction increases. c. decreases as pollution reduction increases. d. equals zero since it is beneficial to reduce pollution.
Demand deposits are liabilities to a bank because
a. the bank must pay interest on these accounts b. we need some method of creating a balance c. the bank must be willing to account for loans and bonds d. the bank could potentially lose this money if loans are not repaid e. the customers have the right to withdraw the funds from their checking accounts