A Price Index Is

question 175

Multiple Choice

A price index is

• A)a comparison of the current price of a market basket to a fixed point of reference.
• B)a comparison of real GDP in one period relative to another.
• C)the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period.
• D)a ratio of real GDP to nominal GDP.

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Definitions:

Electrical Energy

The energy derived from electric potential or kinetic energy, used to power countless devices and systems.

Efficient

Being effective without wasting time, effort, or resources; achieving maximum productivity with minimum wasted effort or expense.

Voltage Drop

Decrease in voltage measured after current passes through a resistance. Also known as voltage loss. See definition for the second of Kirchhoff’s Laws.

Ohmmeter

A device used to measure electrical resistance in units called Ohms.