Suppose a technological advancement makes automobiles 50% safer, and at the same time, the prices of automobiles go up by 25%. Is this a pure price change?
A. Yes, because an improvement in quality has caused prices to rise.
B. No, because it is not possible to put a value on safety.
C. No, because an improvement in quality has caused prices to rise.
D. Yes, because the price has gone up.
Answer: C
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In contrast to previous eras, a significant change seen today is that no model of government
a. is viewed as a good alternative to democracy. b. can successfully overthrow all vestiges of autocratic rule. c. is associated with a significant wealth gap. d. can compete with the power of individual citizens.
In the traditional Keynesian model, a tax cut
A) causes the C + I + G + X line to shift upward. B) causes the C + I + G + X line to shift downward. C) causes a movement along the C + I + G + X line. D) does not affect the C + I + G + X line.