What does the PPI measure?
A) the level of production of goods and services generated in the economy in a given year
B) the average of the prices received by producers of goods and services at all stages of the production process
C) the average change in the prices paid for all goods produced in the economy over a given year
D) the difference between the prices consumers pay for goods and services and the prices producers pay for goods and services
B
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Refer to the figure above. What is the quantity supplied in the market when the market is supplied by one firm?
A) 30 units B) 45 units C) 60 units D) 90 units
When the economy is operating at a point where aggregate demand equals long-run aggregate supply, it must be true that:
A. aggregate demand also equals short-run aggregate supply. B. the economy is in long-run equilibrium. C. prices and expected prices are the same. D. All of these are true.
Prices of finished imported goods are
a. not included in the CPI because the goods were produced outside the country b. not included in the CPI because different countries choose different base periods c. not included in the CPI because import prices are not denominated in U.S. dollars d. not included in the CPI because most imports are raw materials e. included in the CPI
Contribution margin is
a. the contribution of each unit sold towards covering the fixed costs b. the contribution of each unit sold towards covering the variable costs c. the contribution of each unit sold towards covering the average variable costs d. All of the above