Suppose that over time, consumers used discount stores at an increasing rate, the CPI would tend to be
a. accurate
b. underestimated because consumers would buy goods and services at lower prices than those collected by the BLS
c. underestimated because consumers would buy goods and services at higher prices than those collected by the BLS
d. overestimated because consumers would buy goods and services at lower prices than those collected by the BLS
e. overestimated because consumers would buy goods and services at higher prices than those collected by the BLS
D
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Which of the following observations would be valid if the Gini coefficient is equal to zero?
a. Perfect income inequality b. Greater degree of income inequality c. Lorenz curve overlaps the line of perfect income equality d. Unequal distribution of income
A firm's implicit costs are
a. its maintenance costs b. its paid-out costs of production c. its main source of executive costs d. irrelevant to the determination of economic profit e. opportunity costs of production that do not involve money outlays
The concept of rational expectations first appeared on the economic scene in _______, but it wasn't until the _____________ that it received more significant notice in the economics profession
A) 1931; early 1970s B) 1961; early 1970s C) 1981; early 1990s D) 1991; early 2000s E) 1921; early 1980s
If the aggregate supply curve is horizontal,
A. there are unemployed resources. B. the economy is inside the production possibilities frontier. C. it is possible to increase output, without driving up prices, by putting unemployed resources to work. D. All of the choices are correct.