Which of the Following Measures the Overall Price Level

question 76

Multiple Choice

Which of the following measures the overall price level?

• A) the price of some particular commodity or service
• B) the rate of inflation
• C) the consumer price index
• D) the nominal GDP

Understand the concept and components of the circular flow diagram.

Interpret production possibilities curves and understand the concept of opportunity cost.

Identify the factors of production and their roles in the economy.

Analyze the efficiency and implications of different points on the production possibilities frontier.

---

Definitions:

Effective Rate

The effective rate, often referred to as the effective annual rate, is the interest rate on a loan or financial product re-compounded on a yearly basis.

Amortization Schedule

An amortization schedule is a table detailing each periodic payment on an amortizing loan, illustrating how the principal amount is reduced over time.

Effective Rate

The actual interest rate an individual pays on a loan or earns on an investment, accounting for compounding.

Monthly Rate

The interest or return generated by an investment or loan over a one-month period, often annualized for comparison purposes.