The Inflation Rate Is a Measure of How Fast

question 11

Multiple Choice

The inflation rate is a measure of how fast:

• A)the total income of the economy is growing.
• B)unemployment in the economy is increasing.
• C)prices in the economy are rising.
• D)the number of jobs in the economy is expanding.

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Definitions:

Explicit Costs

are direct, out-of-pocket payments for expenses incurred by a business or individual.

Revenues

The total income generated by a company or organization from its activities, before any expenses are subtracted.

Economic Profit

The difference between the total revenues received by a business and the total opportunity costs of all resources used in the production.

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, according to standard accounting practices.