Chain-weighted indexes have less bias compared to fixed-weight indexes.

Chain-weighted indexes have less bias compared to fixed-weight indexes.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Dividing the economic pie more equally may reduce the size of the economic pie. This argument is characterized as:
 a. untrue.
  b. a form of discrimination.
  c. a conflict between equity and efficiency.
  d. a conflict between full employment and economic growth.
  e. b and c.

QUESTION 3

A spike in All Other Outlays of the federal government in 2009 was due to:
 a. an increase in the financial aid given to Greece earlier that year.
 b. an increase in the expenditures on Social Security and Medicare.
 c. the fiscal stimulus package passed earlier that year.
 d. a sudden increase in military expenditure as a result of the war in Iraq.
  e. an increase in the national debt earlier that year.

QUESTION 4

The consumer price index (CPI) tends to understate the true rate of inflation.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

According to the statistics, the distribution of money income:
 a. fluctuated widely since 1947.
  b. changed significantly in favor of the bottom 5 percent.
  c. has not changed greatly since 1947.
  d. has not changed greatly since 1929.

QUESTION 6

Which of the following categories constitutes the majority of federal outlays in 2016?
 a. National defense
 b. Interest on the federal debt
 c. Social Security, Medicare, and welfare
  d. Grants to states and localities
 e. Capital expenditures

QUESTION 7

The consumer price index (CPI) overstates the true inflation rate because it ignores changes in consumers' purchasing patterns as relative prices change.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 8

Which of the following most closely represents the share of total U.S. income to the poorest 20 percent of all U.S. families?
 a. 47 percent.
  b. 23 percent.
  c. 10 percent.
  d. 4 percent.