According to this Application, the failure of including cell phones in a timely manner when calculating the CPI caused the telecommunications component of the price index
A) to become negative. B) to be biased upward.
C) to be biased downward. D) to actually register no perceptible bias.
B
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In a country without foreign trade and no income taxes, if the government increases autonomous taxes by 1000 and the MPS is 0.1, then the initial or first round change in expenditures by all tax payers will be
A) a reduction equal to 1000. B) an increase equal to 1000. C) a reduction equal to 900. D) an increase equal to 900.
A temporary price differential in resource markets is
a. eliminated by resource movements b. caused by a failure of firms to maximize profits c. eliminated by resources moving from highly-valued uses to lower-valued uses d. caused by Congress increasing the federal minimum wage e. a result of firms using the MRP = MRC rule in hiring resources