Which of the Following Is an Example of a Pure

question 106

Multiple Choice

Which of the following is an example of a pure service?

• A) air travel
• B) psychotherapy
• C) baby oil
• D) a laptop
• E) a restaurant meal

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Definitions:

Real Variables

Economic variables that have been adjusted for changes in price levels, reflecting the actual purchasing power.

Nominal Variables

Variables measured in monetary terms without adjusting for inflation, reflecting current prices.

Hyperinflations

Extremely high and typically accelerating inflation rates, drastically eroding the real value of the local currency.

Real GDP

The market value of all final goods and services produced within a country in a year, adjusted for inflation.