For the purpose of calculating the consumer price index, the basket of goods
a. is kept the same from year to year so that the effects of price changes are isolated from the effect of any quantity changes that might be occurring at the same time.
b. is kept the same from year to year; otherwise, the value of the index would remain constant from year to year.
c. varies from year to year; otherwise, the value of the index would remain constant from year to year.
d. varies from year to year so that consumers' buying patterns are updated in a timely fashion.
a
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What type of income tax is reflected in the table above?
A) regressive income tax B) proportional income tax C) progressive income tax D) negative income tax
In the long run, firms in many industries often experience a falling average total cost curve as a result of:
a. gains through trade. b. increasing marginal returns. c. economies of scale. d. lower fixed costs.
Bank reserves are:
A. currency, customer checking and savings deposits. B. any asset used to purchase goods and services. C. cash and similar assets held to meet depositor withdrawals or payments. D. currency and customer checking deposits.
Advertising intended to reach as many consumers as possible, typically through television, newspaper, or magazine ads is referred to as
A. interactive advertising. B. direct marketing. C. subliminal advertising. D. mass marketing.