A Simple Index Is Computed by Using the Values of One

question 16

Multiple Choice

A simple index is computed by using the values of one time series,while a(n) ___________ index is based on a "market basket" consisting of more than one time series.

• A)Weighted
• B)Aggregate
• C)Cyclical
• D)Trend

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Definitions:

Shortage/Surplus

A market condition where the quantity of a good or service supplied is not equal to the quantity demanded; shortages occur when demand exceeds supply, and surpluses occur when supply exceeds demand.

Price Floor

A government or regulatory-imposed minimum price that can be charged for a good or service.

Quantity Demanded

The specific amount of a good or service that consumers are willing to purchase at a given price, at a particular time.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price level in a given time period.