According to the Application, as new products are constantly invented and introduced on the market,
A) the bias in the CPI can be large.
B) the bias in the CPI will eventually disappear.
C) the bias in the CPI will remain virtually unchanged.
D) the bias in the CPI tends to become smaller.
A
You might also like to view...
Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to:
A. asset price inflation. B. goods price deflation. C. a reduction in the debt ceiling. D. goods price inflation.
Whenever the general level of prices rises because of continual increases in aggregate demand, we say that the economy is experiencing
A) supply-side inflation. B) monetary stagflation. C) demand-side inflation. D) aggregate supply shock.
A natural monopoly occurs when
a. patents protect a firm from competition b. copyrights protect a firm from competition c. advertising costs exceed fixed costs d. marginal cost exceeds marginal revenue e. average costs decrease over the whole range of market output
In order for a firm to maximize profits through price discrimination, the firm must have some market power and be able to prevent arbitrage
a. True b. False Indicate whether the statement is true or false