The commodity substitution bias is most likely to put ________ into the CPI and so ________ the inflation rate
A) a random bias; randomly overstate or understate
B) a downward bias; understate
C) an upward bias; overstate
D) a downward bias; overstate
E) an upward bias; understate
C
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The result for the seller of being able to practice price discrimination will be
A) higher profits. B) lower demand elasticity. C) lower quantity sold. D) cost minimization.
Many large universities rent out parts of their campuses to conference groups during the summer because such groups cause little damage, require little staff attention, and bring in large amounts of income. A university's decision to rent its campus to a conference group is most clearly based on
a. the idea that price and quantity selection is a single decision. b. the principle of decreasing returns to scale. c. marginal analysis. d. average cost considerations.
A market in which there were many producers with no control over price could be characterized as _______________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is the best example of a tariff?
A) a subsidy from the U.S. government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers B) a limit on the quantity of residential air conditioners that can be imported from a foreign country C) a $150 fee imposed on all imported residential air conditioners D) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment