To reduce the bias in the consumer price index, the Bureau of Labor Statistics
A) updates the market basket every 10 years, rather than every two years.
B) updates the market basket every two years, rather than every 10 years.
C) incorporates substitutions by consumers when prices of specific products fall rapidly.
D) incorporates substitutions by consumers when prices of specific products rise rapidly.
B
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If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to
a. increase the availability of government health insurance. b. invest in biotechnology to determine the genetic factors that improve health. c. improve life-style decisions by reducing smoking, alcohol consumption, and drug use. d. improve access to medical care. e. improve overall educational attainment so people can better follow the advice from the medical community.
Demand for a good will always increase when
a. the price of a complementary good falls b. the price of a substitute good falls c. tastes change d. incomes decrease e. the price of the good falls