A reason why the CPI overstates the cost of living is it
A. only measures the effects of inflation on the poor.
B. makes no attempt to update the market basket.
C. updates the market basket infrequently, thereby missing the steep price decline in the early adoption period.
D. makes no attempt to ascertain what average people buy.
Answer: C
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In a perfectly competitive market in the short run, as the market demand increases, the firms ________ their output and their economic profit ________
A) increase; increases B) increase; decreases C) decrease; decreases D) decrease; increases
The Convertibility Law of April 1991 in Argentina
A) pegged the Argentinean currency to the US dollar at a ratio of one to one. B) pegged the Argentinean currency to the US dollar at a ratio of one to two. C) pegged the Argentinean currency to the US dollar at a ratio of one to 0.5. D) represents an era of floating exchange rate in Argentina. E) pegged the Argentinean currency to the British pound at a ratio of one to one.