Which of the Following Price Indices Comes Closest to Measuring

question 256

Multiple Choice

Which of the following price indices comes closest to measuring the cost of living of the typical household?

• A)GDP deflator
• B)producer price index
• C)consumer price index
• D)household price index

Calculate unit variable cost and fixed cost using given data.

Analyze the impact of activity level changes on costs and profitability.

Understand the limitations and assumptions underpinning cost-volume-profit analysis.

Understand the concept and purpose of Maslow’s hierarchy of needs.

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Definitions:

Consumer Surplus

The gap between what consumers are ready to pay for a product or service and the actual amount they spend.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Total Utility

The entire pleasure derived from using a certain aggregate quantity of a good or service.

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the actual price they do pay.