Suppose the Bureau of Labor Statistics uses Ballpark Franks as the hot dogs used when calculating the consumer price index. During 2012, Oscar Mayer aggressively reduces prices
Consumers respond by purchasing more Oscar Mayer and less Ballpark Franks. The 2012 CPI is likely to
A) understate the average prices paid by consumers.
B) overstate the average prices paid by businesses.
C) overstate the average prices paid by consumers.
D) understate the average prices paid by businesses.
E) neither understate nor overstate the average prices because some consumers will still buy Ballpark Franks.
C
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Which of the following "factors of production" is included in the neoclassical growth theory?
A) skills and education of the workforce B) cultural attitudes toward work C) effectiveness of the legal system in protecting property rights D) labor measured in units of effective labor E) all of the above
Technology is best defined as
A) society's pool of applied knowledge concerning the production of goods and services. B) the maximum output that can be obtained from a stock of physical capital. C) output inside the production possibilities curve. D) the utilization of more resources for the same amount of production.