The extensions of life expectancy from improved heart procedures and medications over the twentieth century illustrate
A) The problem of non-market transactions being excluded from GDP calculations
B) How price measures like the CPI do not fully account for important items like energy
C) How price measures like the CPI do not fully account for the important quality changes
D) How price measures like the CPI do not take account of the way consumers substitute lower price items for higher price items
Answer: C) How price measures like the CPI do not fully account for the important quality changes
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Other things equal, a fall in the market price caused by a change in supply will
a. decrease consumer surplus. b. increase producer surplus while leaving consumer surplus unchanged. c. increase consumer surplus. d. decrease producer surplus while leaving consumer surplus unchanged.
Unlike Classical economists, Keynes believed that the economy could be trapped in a depression and not return to full employment without government intervention
Indicate whether the statement is true or false
The concept of absolute poverty states that anyone who falls too far behind the average income should be considered poor.
Answer the following statement true (T) or false (F)
Precontractual informational asymmetries that generate contracting costs can lead to
A. bargaining failures and adverse selection. B. perquisite taking and differential risk exposure. C. implicit contracts and reputational concerns. D. explicit contracts and credibility issues.