If Caterpillar Inc raises the price of earth-moving equipment that it manufactures in Illinois, then the CPI will ________ and the GDP deflator will ________
A) increase; increase
B) increase; increase by less than the CPI
C) increase; not change
D) not change; not change
E) not change; increase
E
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Season ticket holders often purchase their tickets before a season begins. There is often a discount associated with season tickets. Why?
A) Buying season tickets entails risk, which consumers are willing to bear if they are compensated for doing so. B) Buying season tickets is a way of guaranteeing a supply of tickets for the secondary market. C) Selling season tickets entails greater transactions costs which team owners hope to avoid. D) Sports teams are local monopolies.
If a pair-wise majority vote was held and the voters' preferences are shown in the table, which of the following is true?
A. The preferences of each member is transitive.
B. The collective preferences of the group are transitive.
C. The outcome of the vote will not change, regardless of voting method.
D. The most efficient outcome for the group will occur if pair-wise majority voting was used.
To determine real GDP, divide nominal GDP by the
a. current values of goods and services. b. final goods and services. c. GDP deflator. d. value of GDP.
Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include
a. effort and natural ability. b. natural ability and years of experience. c. years of experience and job characteristics. d. race and job characteristics.