For the purpose of calculating the consumer price index, the basket of goods
a. is kept the same from year to year so that the effects of price changes are isolated from the effect of any quantity changes that might be occurring at the same time.
b. is kept the same from year to year; otherwise, the value of the index would remain constant from year to year.
c. varies from year to year; otherwise, the value of the index would remain constant from year to year.
d. varies from year to year so that consumers' buying patterns are updated in a timely fashion.
a
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On the eve of World War I, gains for unions included all of the following except:
a. substantial wage gains for members in some industries, including bituminous coal mining. b. the establishment of insurance programs to compensate workers injured on the job. c. political victories, including the elevation of the Department of Labor to cabinet-level status. d. legal protection of the closed shop.
Answer the following statements true (T) or false (F)
1. In the long run, under conditions of perfect competition, economic profits are eventually eliminated. 2. If the entry of new firms substantially raises demand for resources, two forces tend to eliminate economic profit in the long run: upward pressure on cost and downward pressure on price. 3. The more that firms advertise, the closer they get to perfect competition. 4. The lowest possible ATC curve is attained at the optimal scale of output. 5. If price equals marginal cost at the long-run equilibrium, this means that economic efficiency is being achieved.