Which of the following means that the CPI overstates the actual inflation rate?
A) new goods bias
B) quality change bias
C) outlet substitution bias
D) All of the above cause the CPI to overstate inflation.
D
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Refer to Table 2-5. Does either Estonia or Finland have an absolute advantage and if so, in what product?
A) Estonia has an absolute advantage in lumber. B) Finland has an absolute advantage in both products. C) Finland has an absolute advantage in lumber. D) Estonia has an absolute advantage in cell phones.
________ is an institution that receives contributions from workers and uses the funds received to invest in financial securities to fund retirement benefits
A) A mutual fund B) A pension fund C) A hedge fund D) An investment bank
The income tax levied during the Civil War (1861–65) was declared constitutional in Springer v U.S. (1881) because it was not a direct tax
Indicate whether the statement is true or false
The production possibilities curve bows outward because
A) opportunity costs are decreasing as the production of a good increases. B) opportunity costs are increasing as the production of a good increases. C) opportunity costs are fixed as the production of a good increases. D) resources are of uniform quality.