The Fed uses a "core" price index, one that excludes food and energy prices to measure inflation. It does so because
A) food and energy prices have wide swings that are not related to the causes of general inflation.
B) food and energy have inelastic demand curves and consumers will buy them regardless of their price.
C) food and energy prices do not change all that much during the short run, so are irrelevant to the calculation of inflation.
D) it wants to avoid the blame for high gasoline prices causing inflation.
A
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Using the data in the above table, which worker hired at Jefferson's Cleaners is the first to show diminishing marginal returns?
A) the second B) the third C) the fourth D) the fifth
The price elasticity of demand for a good produced by a monopolist
A) equals zero as long as the good has no close substitutes. B) is always inelastic since the demand curve slopes down. C) does not equal zero because there will always be some substitutes, however imperfect they may be. D) does not equal zero because every good has at least one good substitute for it.