Which of the Following Is NOT True of Price Indexes

question 76

Multiple Choice

Which of the following is NOT true of price indexes?

• A) They show changes in the general level of prices.
• B) They are used to estimate the rate of inflation or deflation.
• C) They are used to convert nominal values to real values, so comparisons can be made across time.
• D) They are used to compute the growth rate of real output in the economy.

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Definitions:

Market Share

The proportion of total sales in a market captured by a particular company or product.

Good Quality Product

An item that meets or exceeds expectations in terms of performance, durability, and satisfaction.

Game Frequency

The rate or occurrence at which a specific game or set of games is played, utilized especially in the analysis of repeated games in game theory.

Cartel Breakdown

The disintegration or failure of a cartel, which is an agreement among competing firms to control prices or exclude entry of a new competitor in the market.