Foreign countries buy $1.2 trillion of U.S. goods and services. U.S. residents purchase $1.8 trillion of foreign goods and services. What is net exports?

In constructing the CPI, the BLS has to deal with commodity substitution bias, which is defined as

A) consumers' substitution of discount stores for full service stores to avoid the higher prices in the full service stores. B) consumers' substitution of cheaper goods for goods whose prices increase. C) the bias from quality changes in existing products that cause prices to increase. D) the bias from new goods being introduced that are more expensive than older goods. E) the bias that arises because the BLS changes the CPI market basket each month.

Which of the following is an example of external economies?

(a) The cost of per unit produced in manufacturing goods falls as the industry size grows. (b) The cost of per unit produced falls as the firm size, not the industry size, grows. (c) The cost of per unit produced in manufacturing goods increases as the industry grows. (d) The cost of per unit produced falls as the size of the firm grows.