Product improvements make it difficult for the statisticians who construct the CPI to distinguish between ________ changes and ________ changes.

A. quantity; quality
B. quantity; price
C. price; quality
D. income; price


Answer: C

Economics

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Stadiums and arenas built for use by professional sports teams are often paid for by local governments using tax dollars

What kind of goods are these stadiums and arenas, and why would government use tax dollars to pay for them when the professional sports franchises that use them are generally quite successful, financially?

Economics

Stagflation means a

A) high rate of inflation coupled with a high rate of unemployment. B) high rate of inflation coupled with a very low rate of unemployment. C) low rate of inflation coupled with a very high rate of unemployment. D) low rate of inflation coupled with a rate of unemployment below the natural rate.

Economics

Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result

A) the supply curve for sugar will shift to the right.
B) the supply curve for sugar will shift to the left.
C) the supply curve for cereal will shift to the right.
D) the supply curve for cereal will shift to the left.

Economics

When people hold money to make anticipated purchases of goods and services, they are exercising the _______ demand for money.

A) speculative B) exchange C) transactions D) precautionary

Economics