The introduction of the video cassette recorder in the 1970s exemplified a problem in measuring the cost of living; that problem is the problem of

a. substitution bias.
b. product-improvement bias.
c. introduction of new goods.
d. unmeasured quality change.

c

Economics

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List four characteristics of monopolistic competition

What will be an ideal response?

Economics

Economists claim that a resale price maintenance agreement is not anti-competitive because

a. suppliers are never able to exercise noncompetitive market power. b. if a supplier has market power, it will be likely to exert that power through wholesale price rather than retail price. c. retail markets are inherently noncompetitive. d. retail cartel agreements cannot increase retail profits.

Economics