Suppose the typical consumer buys more bananas than oranges. In fixing the basket of goods and services for the purpose of calculating the consumer price index, the Bureau of Labor Statistics
a. ignores the fact that the typical consumer buys more bananas than orange; this procedure does not affect the value of the index.
b. ignores the fact that the typical consumer buys more bananas than orange; this procedure results in a potentially-serious bias in the index.
c. places more weight on the price of bananas than on the price of oranges; the weights of the two prices are determined by surveying consumers.
d. places more weight on the price of bananas than on the price of oranges; the weights of the two prices are determined by the extent to which those prices have changed over the previous year.
c
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Common causes for a backflow in migration include the following, except:
A. Expected gains in the new country are exceeded by actual gains B. Living costs in the new country are higher than expected C. Costs of being away from family and friends are greater than expected D. Anticipated jobs and promotions are not found in the new country
When the Chinese government buys U.S. government bonds, from the perspective of the United States, this is a(n):
A. capital inflow. B. export. C. import. D. capital outflow.
If the United States sells beef to Japan, the U.S. beef producer is paid with
A) dollars. B) yen, the Japanese currency. C) international monetary credits. D) euros, or any other third currency.
In a competitive price-searcher market, the firms will
a. be able to choose their price, and the entry barriers into the market will be low. b. be able to choose their price, and the entry barriers into the market will be high. c. have to accept the market price for their product, and the entry barriers into the market will be low. d. have to accept the market price for their product, and the entry barriers into the market will be high.