The Consumer Price Index (CPI) is a measure of the:
a. cost of a market basket of consumer goods and services relative to its cost in a base year.
b. change in the average price of a market basket of necessary goods and services
c. cost of a market basket of consumer goods relative to the previous year.
d. change in the average price of all intermediate goods and services.
e. average price of all final goods and services relative to the average price in the previous year.
a
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Technological spillover ________
A) is made possible by the nonrivalry of ideas B) generates an increase in both capital and labor C) is caused by population growth D) is caused by population decline
Competitive firms are able to set price above marginal cost when
A) the markup is less than the cost of going to another store. B) the markup is greater than the cost of going to another store. C) all consumers have full information. D) consumers know what other stores are charging.
Under the U.S. system of regulation, most regulars are selected from
A) politicians and their friends. B) the industry that is to be regulated. C) consumer advocacy groups. D) university professors who understand the nature of the industry and who understand the true interests of consumers.
One result of adverse selection in the used car market is that few plums (high-quality) are sold.
Answer the following statement true (T) or false (F)