The consumer price index (CPI): a. adjusts for changes in ...

[future617RT]

The consumer price index (CPI):
 a. adjusts for changes in product quality.
  b. includes separate market baskets of goods and services for both base and current years.
  c. includes only goods and services bought by typical urban consumer.
  d. uses current year quantities of goods and services.

Question 2

The Laffer curve shows as tax rates rise, tax revenue:
 a. rises.
  b. first rises, then falls, and then rises again.
  c. falls.
  d. first rises, and then falls.
  e. remains at a constant level.

[bdobbins]

Answer to Question 1

c

Answer to Question 2

d