If a Market Is in Disequilibrium

question 175

Multiple Choice

If a market is in disequilibrium:

• A)it will continue unless there is government intervention.
• B)no individual will be better off doing something different.
• C)there are opportunities for people to make themselves better off.
• D)it must be because the government has intervened in the market, resulting in the market's failure to reach equilibrium.

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Definitions:

Consumer Price Index

An index measuring the change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Inflation Rate

The level at which the total pricing metrics for goods and services peak, impairing the utility of money.

Inflation Rate

The acceleration in the average cost levels for goods and services, hindering effective buying power.

Price Index

A statistical measure that examines the weighted average of prices of a basket of consumer goods and services over a period of time.