How are the CPI and the GDP deflator alike? How do they differ?
They are both price indexes used to measure price changes over time. The CPI only includes prices of consumer items, while the GDP deflator includes prices of consumer items, producer goods, investment goods, exports and imports, and goods purchased by the government.
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The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the private market outcome is inefficient because
A) no students will go to college. B) society places less value on educating the next student than it will cost society to educate that student. C) society places greater value on educating the next student than it will cost society to educate that student. D) the marginal cost will shift upward.
What fraction of developing countries have recently experienced some form of significant interethnic conflict?
a. less than one-tenth b. a tenth to one-quarter c. one quarter to one half d. over one half
__________ argue that any exogenous decrease in investment spending would be countered automatically by either increased consumption or interest-sensitive investment spending
A) Monetarists B) Keynesians C) Classical economists D) None of the above.
What percentage of American workers now belong to labor unions?
A. Less than 20 percent B. About 40 percent C. About 60 percent D. More than 80 percent