The technique used to calculate the CPI implicitly assumes that consumers buy
A) relatively more of goods with relative prices that are increasing.
B) goods and services whose quality improves at the rate of growth of real GDP.
C) relatively less of goods with relative prices that are decreasing.
D) more computers and CD players and fewer black -and-white TVs.
E) the same relative quantities of goods as in a base year.
E) the same relative quantities of goods as in a base year.
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Which of the followings is NOT true about the word "autonomous" that economists use?
A) Changes in autonomous components are associated with movements along a curve. B) Changes in autonomous components are associated with shifts of a curve. C) The autonomous component of a variable is exogenous. D) The autonomous component of a variable is independent of other variables in the model.
The above figure shows a graph of the market for pizzas in a large town. At a price of $10, there will be
A) no pizzas supplied. B) equilibrium. C) excess supply. D) excess demand.
As long as the actual market price exceeds the equilibrium market price, there will be:
A) downward pressure on the market price. B) upward pressure on the market price. C) no purchases made. D) Both A and C are correct. E) Both B and C are correct.
Jim is haggling with a car dealer on the price of a used car. If the dealer is getting a bonus per sale made, in addition to the commission, Jim is more likely to be able to
a. Get the car cheap b. Pay a higher price for the car c. Walk away from the deal d. All of the above