To measure core inflation, the BLS excludes ________ from the basket of goods used to calculate the CPI.
A. food and housing
B. housing and gasoline
C. food, clothing, and housing
D. food and gasoline
Answer: D
You might also like to view...
When a central bank buys foreign assets,
A) its holdings of foreign assets rise by the amount of the purchase, but the monetary base is unaffected. B) its holdings of foreign assets and the monetary base rise by the amount of the purchase. C) its holdings of foreign assets rise by the amount of the purchase, and the monetary base rises by the amount of the purchase times the money multiplier. D) the monetary base falls by the amount of the purchase.
Pure economic rent is a payment to a resource that
A) has a high opportunity cost. B) has a perfectly inelastic supply. C) has a negative opportunity cost. D) has a perfectly elastic demand.
Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . What is the minimum price an insurance company could offer (if it had no other costs)?
a. $10,000 b. $3,000 c. $100,000 d. $5,000
Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:
a. 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve [PPC]. b. we can conclude that the society has moved along the PPC. c. we can conclude that resources were being fully utilized at 3 units of X and 4 units of Y. d. we can conclude that resources were being efficiently utilized at 3 units of X and 4 units of Y. e. 3 units of X and 4 units of Y are a combination best represented by a point outside the PPC.