The Implicit Price Level Is

question 47

Multiple Choice

The implicit price level is:

• A)the ratio of nominal to real GDP.
• B)the product of real and nominal GDP.
• C)the ratio of real to nominal GDP
• D)the difference between real and nominal GDP.

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Definitions:

Transfer Price

The price charged for goods, services, or intellectual property transferred between divisions within the same company.

Producing Departments

Departments or divisions within an organization directly involved in producing the goods or services offered to customers.

Fixed Costs

Costs that do not change with the level of production or sales activity within a certain range and period, such as rent, salaries, and insurance.

Cafeteria

A type of food service location within an institution where customers serve themselves from a variety of dishes made available.