The Broadest Measure of the Price Level That Includes All

question 100

Multiple Choice

The broadest measure of the price level that includes all final goods and services is

• A)the producer price index.
• B)the consumer price index.
• C)the GDP deflator.
• D)the wholesale price index.
• E)house price index.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to utilize resources in one way instead of another.

Lower Incomes

Earnings that fall below the median level of national income, often associated with reduced purchasing power and economic opportunities.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same good or service, based directly on the willingness of each customer to pay.

Elastic Demand

A situation where the demand for a product or service varies significantly in response to changes in price.