Most economists believe that the CPI overstates the actual changes in prices while the chain index for GDP understates them
Indicate whether the statement is true or false
FALSE
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All else equal, oil price increases decrease annual oil consumption and therefore decrease the number of years until the oil stock is depleted
Indicate whether the statement is true or false
For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is
A. people in the oil industry deserved the transfer. B. conservation. C. one cannot be dependent on foreign supplies of so crucial a resource. D. American oil was of higher quality and deserved a higher price.
Information asymmetry means: 0-
A. people have good enough information to make acceptable choices, but not complete information. B. complete information is not possible to obtain. C. the lack of information in a market prevents it from existing. D. a situation in which one person knows more than another.
The federal funds rate is closely tied to many interest rates on many types of loans. Which one is the exception?
a. Auto loan rates b. Adjustable rate mortgages c. Adjustable rate home equity loans d. 30-year Treasury bonds e. Business loans