The Amount of Goods and Services Each Dollar Buys at a Given

question 58

Multiple Choice

The amount of goods and services each dollar buys at a given time is called:

• A) inflation.
• B) the consumer price index (CPI).
• C) purchasing power.
• D) the gross domestic product (GDP).
• E) the opportunity cost.

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Definitions:

Marginal Product

The additional output gained by employing one more unit of a given input.

Resource Maximization

It is the technique or strategy of optimally utilizing resources to achieve the highest possible output or efficiency.

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.

Profits

Financial gains realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.