When calculating the CPI, the Bureau of Labor Statistics
A) makes certain to weight the goods and services equally so that no one product is over-weighted.
B) weights the price of all goods and services produced in a year within a country's borders.
C) sums the prices of the goods and services in the average urban household consumption basket.
D) weights the price of goods and services in the basket relative to the importance of the average urban household budget.
E) multiplies by 100 the average price of goods and services in the average urban consumer's basket.
D
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Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?
A) An increase in real income of 0.5% B) A decrease in real income of 0.5% C) A decline of 1% in the price level D) An increase of 1% in the price level
If your competitors will follow your price cuts and ignore price hikes, your firm
A. faces perfect competition. B. faces a kinked demand curve. C. is the marginal price leader of an oligopoly. D. must be the most efficient firm in the industry.
If everyone's utility is given equal weight and a change in resource allocation results in one person's gain exceeding another person's loss, we can say that the new allocation
A) is Pareto superior to the original one. B) increases social welfare. C) decreases social welfare. D) is efficient.
Neither part of Medicare covers
A. long-term stays in retirement homes and prescription drugs. B. prescription drugs. C. doctors' visits. D. long-term stays in retirement homes.