The Measure of the Cost of a Standard Basket of Goods

question 71

Multiple Choice

The measure of the cost of a standard basket of goods and services in any period,relative to the cost of the same basket of goods and services in the base year,is called the

• A) cost-of-living indicator.
• B) consumer production index.
• C) consumer price index.
• D) consumption production index.
• E) cost-of-production index.

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Definitions:

Rent Control

Governmental regulation of the amount landlords can charge for residential housing, intended to make housing more affordable.

Equilibrium Level

A condition where the supply and demand in the market are equal, leading to steady prices and amounts.

Supply Curve

A visual chart that illustrates how the price of a product correlates with the amount suppliers are prepared to manufacture and sell.

Cost Of Production

The total expense incurred in manufacturing a product or providing a service, including labor, materials, and overhead.