The majority of economists believe that the Consumer Price Index
A. understates the increase in the cost of living.
B. precisely measures the increase in the cost of living.
C. overstates the increase in the cost of living.
D. overstates the increase in the cost of living in some years and understates it in others.
Answer: C
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Rising labor productivity means that less labor is needed to produce the same level of output
a. True b. False Indicate whether the statement is true or false
The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2015, the base year, the typical consumer purchased 10 books for $25 each and 25 hamburgers for $2 each. In 2017, the typical consumer purchased 15 books for $30 each and 30 hamburgers for $3 each. The consumer price index for 2017 on Planet Econ equals:
A. 1.00 B. 1.25 C. 1.45 D. 1.15
The barter system is rarely used today because:
How did the Celler-Kefauver Act (CK Act) affect the nation's antitrust policy?
A. The CK Act strengthened the nation's approach to merger enforcement by amending the Clayton Act. Under the CK Act, purchasing assets with the cash of another company was a potential antitrust violation. B. The CK Act strengthened the nation's approach to merger enforcement by making all conglomerate mergers illegal. C. The CK Act strengthened the nation's policy toward predatory pricing by clarifying that pricing lower than marginal cost was an antitrust violation. D. The CK Act weakened the nation's policy by creating a loophole in the Clayton Act making mergers easier.