Substitution bias is a problem with the CPI where
What will be an ideal response?
consumers switch from buying more expensive goods to cheaper goods
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The marginal cost curve intersects the ________ curves at their ________ points
A) average total cost and average fixed cost; minimum B) average product and marginal product; maximum C) average variable cost and total variable cost; maximum D) average total cost and average variable cost; minimum E) average product and marginal product; minimum
Refer to Figure 10-5. Which of the following statements is true?
A) Bundles r and w are not affordable. B) The consumer gets more utility from bundle r than from bundle v. C) The consumer gets less utility from bundle w than from bundle v. D) Bundles r, s, t, and u all cost the same.
Tim deposits $30,000 into Statewide Bank. Statewide has a money multiplier of 8. How much money could Tim’s deposit potentially create?
a. $30,000 b. $240,000 c. $3,750 d. $26,250
Consider Figure 12.3. Becky chooses to charge a low price:
A. only if David chooses a low price. B. only if David chooses a high price. C. regardless of whether David chooses a high or low price. D. in order to induce David to choose a high price.