The quality adjustment bias of the CPI refers to the failure of statisticians to:
A. take into account price changes in goods and services.
B. allow for the possibility that consumers switch from products whose prices are rising.
C. take into account improvements in goods and services.
D. allow for the possibility that consumers switch stores at which they shop.
Answer: C
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In terms of technological progress, economists interpret this as meaning an economy operates more efficiently by producing more output without using any more inputs
Indicate whether the statement is true or false
The coefficients of the VAR are estimated by
A) using a simultaneous estimation method such as TSLS. B) maximum likelihood. C) panel methods. D) estimating each of the equations by OLS.
Refer to the above table. The marginal utility of the 7th movie for Michael is
A. 35 units of utility. B. 435 units of utility. C. 20 units of utility. D. 15 units of utility.
Under the Bretton Woods system, countries experiencing current account surpluses
A. were obliged to revalue their currencies. B. could maintain their fixed exchange rate by selling excess foreign exchange. C. were obliged to stimulate their economies. D. could maintain their fixed exchange rate by buying excess foreign exchange.