Which of the following biases the CPI to underestimate increases in prices?
a. The substitution bias
b. The quality bias
c. The new outlet bias
d. None of the above
d
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The above table shows data on two variables. If these data were graphed, the slope of the line would be
A) 3/5. B) 3. C) 5/3. D) impossible to determine from the information given.
Refer to Table 19-1. Fill in the missing values in the above table. Assume the Big Mac is selling for $4.79 in the United States. Explain whether the U.S
dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate.
We think about the cost of supplying labor as the:
A. the additional equipment and training that is required when hiring a person. B. input costs that go into producing a unit of labor. C. opportunity cost of the individual's time. D. average wage in the labor market.
Minimum differentiation among the political parties suggests that
a) the platforms of the parties will tend to have few, if any, new ideas b) the parties will offer few ideas on minimizing the size and scope of government c) the platforms of the parties will tend to become similar as they try to appeal to a majority of voters d) the platforms of the parties will tend to become dissimilar as they try to appeal to a loyal majority of voters