Headline Inflation Measures Price Changes

question 22

Multiple Choice

Headline inflation measures price changes:

• A) for the entire market basket of the average urban consumer.
• B) using the producer price index.
• C) for the entire market basket, but with food and energy costs taken out of the basket.
• D) using the retail price index.

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Definitions:

Nonexcludable

A characteristic of a good or service that prevents the owner from effectively excluding others from using it, often associated with public goods.

Nonrival-in-consumption

A property of certain goods where one individual's consumption does not diminish the ability of others to consume the same good.

Public Good

An item or service made available to all societal members at no cost, regardless of profit, by either governmental bodies or private individuals or groups.

Common Good

A concept referring to either policies or infrastructure that benefit all members of a community or society.