One of the widely acknowledged problems with using the consumer price index as a measure of the cost of living is that the CPI
a. fails to account for consumer spending on housing.
b. accounts only for consumer spending on food, clothing, and energy.
c. fails to account for the fact that consumers spend larger percentages of their incomes on some goods and smaller percentages of their incomes on other goods.
d. fails to account for the introduction of new goods.
d
You might also like to view...
Laborland has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Laborland's work force. Which of the following will happen in this case if Laborland's capital stock remains unchanged?
A) The country's income per worker will increase. B) The total efficiency units of labor in the economy will decrease. C) The relationship between output and capital stock becomes negative. D) The marginal contribution of labor to Laborland's output will fall.
Regulation is necessary when transactions costs are low enough to allow bargaining between a polluter and a victim
Indicate whether the statement is true or false
Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when the consumer is in consumer equilibrium?
A) 20 units of utility per dollar spent B) 10 units of utility per dollar spent C) 5 units of utility per dollar spent D) 1 unit of utility per dollar spent
An important characteristic of the modern payments system has been the rapidly increasing use of
A) checks and decreasing use of currency. B) electronic fund transfers. C) commodity monies. D) fiat money.