A price index is the
A. cost of a market basket of goods today.
B. cost of a market basket of goods and services today expressed as a percentage of the cost of the same market basket during a base year.
C. year that is chosen as the point of reference for comparison of prices in other years.
D. cost of a market basket of goods and services a year ago expressed as a percentage of the cost of the same market basket today.
Answer: B
You might also like to view...
Refer to Figure 6-11. What is the value of the price elasticity of supply between g and h?
A) 0.5 B) 2 C) 20 percent D) 0.02
A bank divided in different divisions for consumer banking and business banking is an example of
a. An M-form of an organization b. A functional organization c. An N-form organization d. All of the above
From the perspective of consumers, a quota is preferred to a tariff.
Answer the following statement true (T) or false (F)
Which of the following is NOT a reason social returns might be greater than private returns?
A) Excess competition between firms B) Knowledge spillovers C) Spillovers from research and development D) Capital market imperfections