The consumer price index is the
A) average of the prices of new final goods and services produced in the economy over a period of time.
B) cost of a market basket of goods and services typically consumed in the base year.
C) cost of a market basket of goods and services typically consumed in the current period.
D) average of the prices of the goods and services purchased by a typical urban family of four.
D
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Suppose, with a given supply and demand curve, the market for guitars would clear at $500, but the current price of guitars is $700. Given the above information,
A) there is a shortage of guitars. B) there is a surplus of guitars. C) the market for guitars is fully coordinated. D) the quantity of guitars supplied equals the quantity demanded.
From an economic standpoint, if one believes that a group would be better off from a policy change, this implies that _____
a. a majority of the group would be better off because of the change b. a super-majority of the group would be better off because of the change c. everyone in the group would be better off because of the change d. the total effect of the change is positive, even if most individuals are not better off
An economic model is:
a. a plastic scaled version of the economy. b. a complete depiction of reality. c. an abstraction from reality. d. applicable to consumer behavior but not to producer behavior. e. not an accepted tool of the economics profession.
What is the difference between nominal and real GDP?
a. Nominal GDP is adjusted for changes in the price level; real GDP is not. b. Real GDP is adjusted for taxes and transfer payments; nominal GDP is not. c. Real GDP is adjusted for changes in the price level; nominal GDP is not. d. Nominal GDP is adjusted for depreciation; real GDP is not. e. Real GDP is adjusted for depreciation; nominal GDP is not.