The market basket of goods and services used to calculate the consumer price index [CPI] by the Department of Labor in the U.S. changes only every two years

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Does the fact that the price elasticity for food is inelastic violate the law of demand?

What will be an ideal response?

Economics

A financial market panic that causes US depositors to withdraw their funds from Chinese banks, would cause a(n)________ in the demand of US dollars and a(n) _________in the demand of the Chinese Yuan

a. Increase; Increase b. Increase; Decrease c. Decrease; Increase d. Decrease; Decrease

Economics

Monopolistic competition is characterized by

A. one firm selling several products. B. many firms selling the same product. C. many firms selling slightly different products. D. one firm selling one product.

Economics

You value your favorite shirt at $110. Someone else values it at $150, and that person is willing to pay you $120 for your shirt. Would selling your shirt to this person for $120 be Pareto efficient?

A. Yes, because even though you gain from the trade and he loses, there is the potential for you to compensate him for his loss. B. No, the person paid you $120 for the shirt so his net benefit was $30, while your net benefit was $10. For this change to be Pareto efficient, each of you should have the same net benefit. C. Yes, because both of you are better off as a result of the trade. D. No, because you did not receive the maximum amount the other person would have been willing to pay for the shirt.

Economics