The CPI tends to overstate the true inflation rate because
A. we cannot know what the true inflation rate is.
B. the market basket actually selected is inappropriate.
C. the market basket fails to weigh housing costs sufficiently.
D. it fails to consider the effects of new products in the marketplace.
Answer: D
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Vicki would be classified as
A) a voluntary part-time worker. B) unemployed. C) an involuntary part-time work. D) not in the labor force because she is a full-time student. E) a discouraged worker.
What are the differences between the federal debt, the budget deficit, and the primary budget deficit?
What will be an ideal response?
In monopolistically competitive markets, economic profits ____, and ____ shifts the demand curve of the remaining firms to the ____
a. signal some remaining firms to exit; exit; right b. signal some remaining firms to exit; exit; left c. signal new firms to enter; entry; left d. signal new firms to enter; entry; right
Which of the following is NOT a characteristic of a pure monopoly?
A. Firms cannot enter freely. B. Firms sell unique products. C. Firms can control a scarce resource. D. Firms are unable to acquire patents.