Which of the Following Is the Significance of a Country's

question 129

Multiple Choice

Which of the following is the significance of a country's price index?

• A)It helps in measuring changes in the nominal interest rate in a country.
• B)It helps in measuring the total disposable income of a country.
• C)It helps in determining a country's real GDP each year.
• D)It helps in measuring changes in the prices of only luxury goods.
• E)It helps in measuring the demand for goods and services exported by a country.

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Definitions:

Consumer Surplus

Difference between what a consumer is willing to pay for a good and the amount actually paid.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Negotiated Price

A final price which is agreed upon by both the buyer and seller after a process of negotiation.

Cooperative Game

Game in which participants can negotiate binding contracts that allow them to plan joint strategies.