Which of the following is not an advantage of the chain weighted CPI over the fixed CPI?
a. the chain-type index includes newer products
b. the chain index incorporates the increase in the quality of goods
c. the chain index includes discounting and the substitution of products
d. the chain index includes the price of the product only at standard prices
d. the chain index includes the price of the product only at standard prices
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A trade deficit occurs when:
A. tariffs exceed quotas. B. imports exceed exports. C. quotas exceed tariffs. D. exports exceed imports.
Suppose that in October the price of a cup of cafe latte was $2.50 and 400 lattes were consumed. In November the price of a latte was $2.00 and 600 lattes were consumed. What might have caused this change?
A) The price of coffee beans (an input of production of cafe lattes) fell. B) The price of coffee beans (an input of production of cafe lattes) rose. C) The price of tea (a substitute for cafe lattes) rose. D) The price of tea (a substitute for cafe lattes) fell.
The Ricardo-Barro effect holds that
A) equal increases in taxes and government expenditures have no effect on equilibrium real GDP. B) government budget deficits have no effect on the real interest rate. C) a government budget deficit crowds out private investment. D) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
The new GATS and TRIPS are separate agreements negotiated within the WTO framework as part of the Uruguay Round that apply to
A) services and aircraft. B) services and transportation. C) agriculture and textiles. D) services and intellectual property. E) textiles and transportation.