One problem with keeping the CPI basket fixed is it:
A. doesn't accurately isolate price changes from behavior changes.
B. doesn't allow for changes in people's preferences over time.
C. can't properly predict when prices will change.
D. doesn’t really capture what a typical household may purchase in a base year.
B. doesn't allow for changes in people's preferences over time.
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Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only calculators; split his time between computers and calculators B. produce only calculators; produce only computers C. produce only computers; produce only calculators D. split his time between computers and calculators; produce only calculators
The two sectors of the economy in the simple circular flow model are
A) the employed and the unemployed. B) households and businesses. C) foreign markets and domestic markets. D) the private sector and the public sector.
As a result of recent empirical research, there has been a convergence of Keynesian and monetarist opinion to the view that
A) money is all that matters. B) money does matter. C) money does not matter. D) fiscal policy is all that matters.
The marginal physical product of labor is the
A) total output divided by the number of labor employed. B) wage that must be paid to labor. C) value of sales divided by additional labor used. D) change in output generated by a unit change in labor.