The Federal Reserve is most concerned with
A. the CPI.
B. the PPI.
C. the PCE.
D. the Core PCE.
Answer: D
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Susie doesn't buy ice cream this week at the grocery store because she intends to start a diet in a few days. Her behavior is an example of:
A. a commitment device. B. status quo bias. C. the endowment effect. D. positive framing.
OLS is biased and inconsistent when applied to a structural equation in a simultaneous equations system.
Answer the following statement true (T) or false (F)
Figure 5.4In Figure 5.4, supply elasticity is infinite in graph:
A. A. B. B. C. C. D. D.
If a pollution tax imposed on a firm is smaller than the external cost:
A. the externality is completely internalized. B. the social production cost increases by the amount of the pollution tax. C. the pollution tax transfers the full cost borne by people outside the firm back to the firm itself. D. from society's viewpoint, the firm is producing too much.