The CPI bias was estimated by the Congressional Advisory Commission on the Consumer Price Index as
A) understating the actual inflation rate by about 5 percentage points a year.
B) understating the actual inflation rate by more than 5 percentage points a year.
C) overstating the actual inflation rate by about 1 percentage point a year.
D) overstating the actual inflation rate by more than 5 percentage points a year.
E) understating the actual inflation rate by about 1 percentage point a year.
C
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Goods and services that can be produced by using commonly available resources that could be allocated to a wide variety of alternative tasks have a supply that is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.
Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labor demand to be greater than labor supply. B) below the market wage, causing labor demand to be less than labor supply. C) above the market wage, causing labor demand to be greater than labor supply. D) above the market wage, causing labor demand to be less than labor supply.