The consumer basket used calculating the CPI depends on the goods and services selected in the base year. Suppose in 2000 we used 1952 as a base year. It would be less representative of the goods and services we buy in 2000 because the only good included in the CPI would be
a. personal computers
b. CDs
c. VCRs
d. roller blades
e. bread
E
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The introduction of a new technology that increases the productivity of labor will:
A. increase the supply of labor. B. increase the demand for labor. C. decrease the demand for labor D. decrease the supply of labor.
Another name for stockholder wealth maximization is
A) profit maximization. B) maximization of earnings per share. C) maximization of the value of the common stock. D) maximization of cash flows.
Which part of the Foreign Corrupt Practice Act (FCPA) prohibits employees and representatives of U.S. firms from bribing foreign officials?
A) Part I B) Part III C) Part II D) Part VI
A lump-sum tax:
A. takes the same percentage of taxes from income from all taxpayers. B. requires those with low incomes to pay a smaller percentage of their income than high-income people. C. is levied so that low-income taxpayers pay a greater proportion of their income toward taxes than high-income taxpayers. D. taxes everyone the same amount, regardless of their income.