The higher price of imported products due to trade barriers causes some consumers to shift their purchases to a domestically-produced product which is now:
A. Lower in price because import competition has risen
B. Higher in price because import competition has risen
C. Higher in price because import competition has declined
D. Lower in price because import competition has declined
C. Higher in price because import competition has declined
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The bias in the CPI affects government outlays because the overstatement of inflation
A) means that tax receipts are less than what is needed to cover government outlays. B) decreases government outlays by more than what is justified. C) increases government outlays by more than what is justified. D) decreases social welfare benefits. E) increases fiscal pressure.
Which of the following statements is true?
A) Economics is concerned with money, not choices. B) Economics can be used to predict people's actions. C) Economics does not provide insights into human behavior. D) Economic reasoning tends to reduce the quality of decision making.