For the CPI to provide an accurate measure of the prices paid by urban consumers, it is necessary to
A) have a market basket that is consistent and corresponds to what households actually purchase.
B) make certain that the incomes of the consumers surveyed do not change because such a change would affect the market basket of the goods and services they buy.
C) change the market basket each month to reflect the changes that consumers make.
D) assign equal weights to all the goods and services included in the market basket surveyed so that nothing is over-weighted.
E) have prices stated in dollars so consumers can compare what they spend.
A
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient. B) If the price of pecans is $9 consumers will purchase more than the economically efficient output. C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output. D) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss.
Long-term increases in productivity that have increased the demand for labor, and raised real wages, have resulted primarily from ________ and ________.
A. technological progress; a modernized capital stock B. a modernized capital stock; an increased labor supply C. technological progress; an increased labor supply D. a modernized capital stock; skill-biased technological change
Which of the following examples would result in a decreased product price?
a. The supply for video games remains constant, but the demand increases. b. The demand for DVD players decreases, but the supply decreases more. c. The supply for Geiger counters increases, but the demand increases more. d. The demand for remote control drones increases, but the supply increases more.
Exhibit 12-1 Business cycle
?
In Exhibit 12-1, the recovery phase of the business cycle can be represented by points:
A. A. B. C. C. E to G. D. C to E.