The Average Price Level Is Equivalent to

question 12

Multiple Choice

The average price level is equivalent to

• A) the price of a single good.
• B) the price of a market basket of goods.
• C) the price of exports.
• D) the price of imports.

---

Definitions:

Deposit

A deposit refers to a sum of money placed into an account or given to another party as security for future transactions, often used in banking, leasing, and rental agreements.

Incremental Pre-tax Profits

Profits generated from a specific event or decision, calculated before taxes are deducted.

DSO

Days Sales Outstanding, a measure of the average number of days that it takes a company to collect payment after a sale has been made.

Bad Debt

A receivable that is considered irrecoverable and is therefore written off as a loss.