On average, over the last 50 years, real GDP has grown by about
a. 3 percent per year.
b. 2 percent per year.
c. 1 percent per year.
d. 4 percent per year.
a
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In economic theory, the word "demand" refers to
a. the amount people are willing to purchase at various prices. b. those wants or needs that are urgent or pressing. c. wants that are economic in character rather than social, cultural, or spiritual. d. the desire of persons for a good, regardless of whether they're willing to purchase the good.
A measure of the volatility of a variable is its
a. present value. b. future value. c. return. d. standard deviation.
creation of wealth
What will be an ideal response?
The "new product bias" in the consumer price index refers to the idea that
A) consumers switch to new goods when the prices of old goods increase, and the CPI overestimates the cost to consumers. B) consumers switch to old goods when the prices of new goods increase, and the CPI underestimates the cost to consumers. C) consumers prefer new goods, even if they are worse in quality than old goods, and this causes the CPI to underestimate the cost to consumers. D) new products' prices often decrease after their initial introduction, and the CPI is adjusted infrequently and overestimates the cost to consumers.