Which of the following statements about the CPI and the GDP deflator is TRUE?
A. The CPI measures the price level; the GDP deflator measures the production of an economy.
B. The CPI refers to a base year; the GDP deflator always refers to the current year.
C. The weights given to prices are not the same.
D. The GDP deflator takes the price of imported goods into account; the CPI does not.
Ans: C. The weights given to prices are not the same.
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Which of the following factors is least likely to affect what goods and services countries end up trading in the international market?
a. International trade tariffs b. Government debt levels c. Comparative advantages d. Differences in tastes e. Different technological needs
A manager can determine if her product is viewed as a normal good or an inferior good by considering
A) price elasticity. B) cross elasticity. C) income elasticity. D) advertising elasticity.