Michelle bought word-processing software in 2009 for $75 . Michelle's cousin, Barry, bought an upgrade of the same software in 2010 for $75 . To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias
b. unmeasured quality change
c. introduction of new goods
d. income bias
b
Economics
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In Figure 10-5 above, suppose that the economy's initial steady-state point is A. An increase in the rate of national saving changes the steady-state point to
A) point B. B) point C. C) point D. D) a point to the left of point A.
Economics
If money were not used as a medium of exchange,
a. the gains from trade would be severely limited. b. our standard of living would probably improve. c. the transaction costs of exchange would be lower. d. economic efficiency would increase.
Economics