The CPI may overstate inflation for all the following reasons except
A. problems measuring changes in the quality of goods.
B. changes in Social Security benefits.
C. substitution by consumers towards cheaper goods.
D. problems measuring the quality of services.
Answer: B
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"The new goods bias puts a downward bias into the CPI and its measure of the inflation rate." Is the previous sentence correct or not? Explain your answer
What will be an ideal response?
A game in which all the players are worse off at the end of the game is a
A) negative-sum game. B) dominant strategy game. C) positive-sum game. D) noncooperative game.
Copyrights and patents are examples of barriers to entry that give firms monopoly pricing powers
a. True b. False Indicate whether the statement is true or false
Refer to Figure 16.4. If the economy is initially in equilibrium at P3 and Q1, the appropriate policy to move the economy to an equilibrium at P1 and Q2 would be to
A. Increase government regulation. B. Increase the marginal tax rate. C. Increase the minimum wage rate. D. Increase the investment in human capital.