A measure of the average price of a given class of goods or services relative to the price of the same goods and services in a base year is called a:
A. real quantity.
B. real price.
C. rate of inflation.
D. price index.
Answer: D
You might also like to view...
Suppose you purchase a new home for $300,000, making a down payment of 50% and taking out a mortgage on the balance. What is the return on your investment in your home if one year later the price of your home increases by 50%?
A) 0% B) 10% C) 50% D) 100%
What does it mean when a good is rival in consumption?
a) One person's use of the good diminishes another person's ability to use it. b) People can be prevented from using the good. c) No more than one person can use the good at a time. d) Everyone will be excluded from obtaining the good.
When we are at full employment
A. the unemployment rate is 0. B. the cyclical unemployment rate is 0. C. the structural unemployment rate is 0. D. the frictional unemployment rate is 0.
All of the following are sources of comparative advantage except
A) climate and natural resources. B) relative abundance of labor and capital. C) a strong foreign currency exchange rate. D) technology.