-Refer to the Above Table

question 65

Multiple Choice

-Refer to the above table.From year 1 to year 2,

• A) there is inflation.
• B) prices are stable.
• C) there is deflation.
• D) there is hyperinflation.
• E) the price index is unchanged.

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Definitions:

Law of Diminishing Returns

The principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Cost Curve

A graphical representation showing the cost of producing different quantities of output, typically illustrating concepts such as marginal and average costs.

Per Unit Costs

The average cost incurred for producing or acquiring one unit of a product or service.

Resource Prices

Refer to the market values assigned to natural or human-made materials that are used in the production of goods and services.