Under which of the following conditions will there be no substitution bias in the CPI?
A) Indifference curves are convex.
B) Indifference curves are L-shaped.
C) Indifference curves are linear.
D) Indifference curves are downward sloping.
B
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Assuming a worker's money wage rose from $10 per hour to $20 per hour while all product price have doubled, then in the classical model, this worker would
a. supply more labor after the wage increase. b. supply less labor after the wage change. c. supply the same amount of labor after the hourly wage increase. d. demand less leisure.
A deadweight loss is the loss to society of not producing the supply-and-demand determined level of output
Indicate whether the statement is true or false
Which of the following defer payments?
a. credit cards and debit cards b. neither credit cards nor debit cards c. credit cards but not debit cards d. debit cards but not credit cards
The merger of Southwest Bell (SBC) and AT&T companies is an example of a
A. cooperative merger. B. vertical merger. C. consolidation merger. D. horizontal merger.