The Consumer Price Index Measures

question 43

Multiple Choice

The consumer price index measures:

• A)the cost of all goods and services produced in the U.S.economy.
• B)the average change over time in the selling prices received by domestic producers for their output.
• C)the cost of a fixed market basket of consumer goods and services produced in the U.S.economy.
• D)the ratio of an economy's nominal GDP to its real GDP.
• E)the income distribution of an economy.

---

Definitions:

Hierarchy Of Needs

A psychological theory proposed by Abraham Maslow, outlining a sequence of human needs from basic survival to achieving one's full potential.

Need Deprivation

A psychological condition resulting from the lack of fulfillment of basic human needs, affecting behavior and motivation.

Equity Theory

A theory that proposes individuals are motivated by a sense of fairness in the comparison of their own input-output ratio to that of others.

Perceived Inequity

A feeling experienced by employees when they believe the rewards they receive are not proportional to their contributions when compared to others.