Improvements in the quality of consumer goods and services over time
a. cause inflation as measured by the CPI to overstate the actual inflation rate
b. cause inflation as measured by the CPI to understate the actual inflation rate
c. are accounted for in the CPI
d. are insignificant and thus would not affect the CPI even if accounted for
e. improve the accuracy and consistency of the market basket
A
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The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of
A) 20 years. B) 17 years. C) unlimited period. D) 100 years.
The triple-A corporate bond rate is the rate that ________ on bonds that they issue.
A. commercial banks pay B. the government pays C. the Fed pays D. the least risky firms pay
Under perfect competition the person that ends up with the ________ unit is the person that values it exactly at its price.
A. last B. first C. marginal D. only
In analyzing human decision and action, economists assume that
A. there are no scarce resources in the economy. B. people's behavior reflects rational self-interest. C. scarcity is more important than choice. D. costs are more important than benefits.