What are some criticisms of the CPI as a measure of inflation?
What will be an ideal response?
The CPI is criticized as a measure of inflation because it may not be representative of all consumers, it can incorrectly adjust for quality changes, and it can ignore the relationship between price changes and the importance of items in the market basket.
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In what two ways can education contribute to economic growth?
What will be an ideal response?
George produces cupcakes. His production cost is $10 per dozen. He sells the cupcakes for $16 per dozen. His producer surplus per dozen cupcakes is
a. $6. b. $10. c. $16. d. $26.
Use the table below to answer the following question.ProducerMinimum Acceptable Product PriceActual Product Price (Equilibrium Price)Kimberly$6$13Drake713Nicki913Victoria1113If the equilibrium price increases, the
A. consumer surplus will increase. B. producer surplus will decrease. C. producer surplus will increase. D. allocative efficiency will increase.
What type of risk behavior does the person exhibit who is willing to pay $5 for the chance to bet $60 on a game where 20% of the time the bet returns $100, and 80% of the time returns $50? Explain
What will be an ideal response?