When a good gets better from one year to the next, the CPI has a what is called
A) commodity substitution bias.
B) outlet substitution bias.
C) magnitude of change bias.
D) new goods bias.
E) quality change bias.
E
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The free-rider problem is larger for private goods than it is for public goods.
Answer the following statement true (T) or false (F)
The government will conduct expansionary fiscal policy if it attempts to
A. reduce real GDP. B. reduce the price level. C. shift the aggregate demand curve to the left. D. reduce the level of unemployment.
The harmful effect of a price ceiling to ________ is ________.
A. producers; the selling price of the product is above the equilibrium price B. consumers; the ceiling creates a shortage of the product C. producers; the ceiling creates a surplus of the product D. consumers; the selling price of the product is above the equilibrium price
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. Assume that a store is giving hamburgers and sodas away for free. Consumers can have as many sodas and hamburgers as they want, but the food has to be consumed one unit at a time. If George has already had one soda and two hamburgers, then George should
A. be indifferent between consuming the second soda or the third hamburger. B. consume neither another soda nor another hamburger to maximize his utility. C. next consume a hamburger to maximize his utility. D. next consume a soda to maximize his utility.