The Consumer Price Index (CPI):
A. assumes that consumers substitute away from cheaper goods.
B. tends to understate the impact of price changes.
C. is more accurate than the GDP deflator.
D. tends to overstate the impact of price changes due to substitution bias.
Answer: D
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Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
A) cyclically unemployed. B) avoidably unemployed. C) frictionally unemployed. D) a discouraged worker. E) not in the labor force because she moved more than 150 miles.
Elasticities are often _______ in the short run than in the long run.
a. higher b. lower c. equal d. congruent
The reason poor, young, unmarried women allow themselves to get pregnant is so they can get on welfare, according to conservatives like ____________.
Fill in the blank(s) with the appropriate word(s).
What is the most important factor that explains differences in living standards across countries?
a. the quantity of money b. the level of unemployment c. productivity d. equality