The GDP deflator is
A. the least used index because it is so costly to calculate.
B. an index that utilizes a consumer's market basket of goods in calculating the inflation rate.
C. the most general indicator of inflation since it measures changes in the prices of all goods and services in the economy.
D. an index used to calculate inflation at the wholesale level.
Answer: C
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It is argued that the market will
A. not produce a nonexcludable public good. B. produce the socially optimal output of a nonexcludable public good. C. produce too much of a nonexcludable public good. D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits. E. b and d
The income tax levied during the Civil War (1861–65) was declared constitutional in Springer v U.S. (1881) because it was not a direct tax
Indicate whether the statement is true or false
What does economics have in common with sociology?
a. Economics and sociology ask fundamentally the same questions. b. Economics and sociology use the same tools to analyze issues. c. Both are social sciences. d. What and how economists study is very similar to what and how sociologists study. e. Explaining something about society is only a secondary purpose in both areas.
Use the table below to answer the next question for a perfectly competitive firm. OutputTotal RevenueTotal Cost0$0$501407428094312011741601425200172The market price of the product in the short run is
A. $40. B. $160. C. $80. D. $120.