A Ratio of the Price of a Representative Basket of Goods

question 55

Multiple Choice

A ratio of the price of a representative basket of goods and services in some year relative to an arbitrary base year is

• A) the rate of unemployment.
• B) the rate of inflation.
• C) a price index.
• D) an index of real wages.
• E) a measure of the rate of growth of labor productivity.

---

Definitions:

Consumer Surplus

The contrast between the theoretical sum consumers are prepared to pay and the practical sum they pay for a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service compared to its market price, representing their net benefit.

The Nutty Nutcracker

A whimsical, often humorous adaptation of the traditional "Nutcracker" ballet, integrating various contemporary characters and pop culture references.

Willingness to Pay

The maximum amount a consumer is prepared to spend on a good or service.