A Measure Comparing the Prices of Consumer Goods and Services

question 28

Multiple Choice

A measure comparing the prices of consumer goods and services that a household typically purchases to the prices of those goods and services purchased in a base year is

• A) the GDP deflator.
• B) the consumer price index.
• C) the price level.
• D) inflation.
• E) the base measure.

---

Definitions:

Hire

The act of giving someone a job; it involves agreeing to employ an individual under specified terms.

Marginal Product

The rise in production resulting from one more unit of input, while keeping all other inputs unchanged.

Units of Output

The quantity of goods or services produced by a business, factory, or individual within a certain timeframe.

Value

Value refers to the importance, worth, or usefulness of something, often determined by its desirability, utility, or monetary worth.