When the Media Reports the U

question 55

Multiple Choice

When the media reports the U.S. inflation rate, the number cited is usually a rate computed using:

• A) the implicit price deflator.
• B) the consumer price index.
• C) the personal consumption expenditures price index.
• D) the ratio of real and nominal wages.

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Definitions:

Marginal Benefit

Marginal Benefit refers to the additional satisfaction or utility that a person receives from consuming an extra unit of a good or service.

Marginal Cost

Marginal cost describes the increase in total cost that arises from producing one more unit of a particular good or service.

Economic Perspective

A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions.

Productive Resources

Inputs used in the production of goods and services, including labor, capital, and natural resources.