Which of the Following Paired Concepts Are Equivalent to Each

question 53

Multiple Choice

Which of the following paired concepts are equivalent to each other?

• A)constant costs; economies of scale
• B)decreasing returns; decreasing costs
• C)increasing returns; increasing costs
• D)decreasing costs; economies of scale
• E)increasing returns; diseconomies of scale

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Definitions:

Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, changing over time to reflect the cost of living.

Inflation

An economic condition characterized by an overall increase in prices and decrease in the purchasing value of money.

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the amount of money in circulation.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services.