The Amount of Goods and Services Each Dollar Buys at a Given

question 76

Multiple Choice

The amount of goods and services each dollar buys at a given point in time is:

• A) inflation
• B) consumer price index (CPI)
• C) purchasing power
• D) none of the above

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Definitions:

Opportunity Cost

The penalty of dismissing the closest superior alternative when engaging in the process of decision-making.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology).

Strike

A work stoppage caused by the mass refusal of employees to work, usually in an attempt to gain better wages or working conditions.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are used efficiently.