What basket of goods is used to construct the CPI?
a. a random sample of all goods and services produced in the economy
b. the goods and services that are typically bought by consumers as determined by government surveys
c. only food, clothing, transportation, entertainment, and education
d. the least expensive and the most expensive goods and services in each major category of consumer expenditures
B
Economics
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Accounting profits are total revenues minus
A) all relevant opportunity costs. B) explicit and implicit costs. C) explicit costs and all other relevant opportunity costs. D) explicit costs.
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If the real interest rate is above zero, we know that the nominal interest rate must be:
A. lower than the inflation rate. B. higher than the inflation rate. C. equal to the inflation rate. D. zero.
Economics