Price indexes can overstate inflation because they
A) omit some quality improvements.
B) do not contain the prices of any used goods.
C) do not contain the prices of foreign goods.
D) do not contain the prices of services.
A
Economics
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Equilibrium in the labor market
A) cannot occur if the production function is shifting upward. B) can happen only when actual GDP exceeds potential GDP. C) means that resources are allocated inefficiently D) occurs when actual GDP is equal to potential GDP
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The government's ability to coerce can enhance economic efficiency by:
A. eliminating income inequality. B. correcting market failures. C. preventing resources from going to their most valued uses. D. restraining self-interest.
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