A Nominal Quantity Is One That Is Measured

question 16

Multiple Choice

A nominal quantity is one that is measured

• A)using the GDP deflator.
• B)in current dollar value.
• C)in physical, or constant, terms.
• D)using the CPI.

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Definitions:

Utility Maximization

An economic principle that suggests individuals seek to achieve the highest level of satisfaction possible with their available resources.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and investment income.

Marginal Utility

The further satisfaction or benefit obtained by using an additional unit of a good or service.

Consumer Behavior

The study of how individuals make decisions to spend their resources on consumption-related items.