To the extent that the CPI does not accurately measure the true price level,
a. the BLS will change the underlying market basket of goods
b. it is useless
c. it exaggerates the true cost of living
d. it results in underindexation of social security payments
e. it underestimates the true cost of living
C
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When the demand for a good is inelastic and its price increases, the total revenue from the sale of the good will ________
A) increase B) decrease initially and then increase C) decrease D) not change
The simplest economic definition of discrimination is
A. prejudice. B. unequal pay for equal work. C. a dislike by one group associating with another group. D. unequal pay for unequal work.
We say that equilibrium in a perfectly competitive market is allocatively efficient because
a. the sum of consumer and producer surplus is maximized b. the sum of consumer and producer surplus is minimized c. the sum of consumer and producer surplus is zero d. consumer surplus is maximized e. producer surplus is zero
If a nation is currently operating at a point inside its production possibilities curve, it
A. can increase the output of one good without decreasing the output of the other good. B. has fully employed resources. C. has no inefficiently employed resources. D. is operating at full potential.