Which of the following makes the Consumer Price Index a less accurate measure of the cost of living?
i. The monthly price survey conducted to collect information about prices is very unreliable.
ii. The existence of a new goods bias in the calculation of the CPI
iii. The existence of a quality change bias in the calculation of the CPI
A) i, ii, and iii B) i and ii C) i only D) ii only E) ii and iii
E
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When exchange rates are very volatile, with a wide range of variation, the currency is said to be:
a. in limbo. b. in free float. c. perfectly flexible. d. in sluggish float.
Suppose a university refunds students 75% of their tuition if they drop out before the third week of class, 50% if they drop out between their third and fifth week, 25% if they drop out between their sixth and eighth week, and 0% after the eighth
week. Flint paid $1,000 tuition, and is in his fourth week of class. What's his sunk cost? A) $0 B) $250 C) $500 D) $750 E) $1,000