If the Bureau of Labor Statistics changed the way it calculates the consumer price index (CPI) so as to take into account product quality changes and the changing mix of products and services purchased by the average family, the result would most likely
A. show a higher rate of inflation.
B. cause an increase in Social Security payments.
C. cause higher wage increases for union employees with contracts that specify automatic wage boosts when the CPI rises.
D. show a lower rate of inflation.
Answer: D
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John Nash, the mathematician responsible for the Nash equilibrium, also proved that any reasonable bargaining outcome would
a. Split the gains from trade b. Allocate the gains from trade to the seller c. Allocate the gains from trade to the buyer d. All of the above
When a new firm enters a competitive price-searcher market, the demand curves faced by all existing firms in that market will
a. shift to the left. b. shift to the right. c. shift in a direction that is unpredictable without further information. d. remain unchanged. It is the supply curve that will shift.
A lower interest rate makes more investment projects profitable, meaning that:
A. there is a direct relationship between the rate of interest and the quantity of investment spending. B. there is an inverse relationship between the rate of interest and the quantity of investment spending. C. there is no relationship between the rate of interest and the quantity of investment spending. D. the demand curve for investment spending is horizontal.
The table below shows the export and import values of automobiles, pharmaceuticals, and clothing in Country A and Country B. Country AExports ($Billions)Imports ($Billions)Automobiles2040Pharmaceuticals3030Clothing400Country BExports ($Billions)Imports ($Billions)Automobiles020Pharmaceuticals4040Clothing4535 The weighted average of the intra-industry trade (IIT) shares in Country A's trade in automobiles, pharmaceuticals, and clothing is
A. 0.4375. B. 0.625. C. 0.875. D. 1.286.