Which of the Following Is Not Correct

question 10

Multiple Choice

Which of the following is not correct?

• A)The consumer price index gives economists a way of turning dollar figures into meaningful measures of purchasing power.
• B)The consumer price index is used to monitor changes in the cost of living over time.
• C)The consumer price index is used by economists to measure the inflation rate.
• D)The consumer price index is used to measure the quantity of goods and services that the economy is producing.

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Definitions:

Implicit Costs

Denotes the opportunity costs of utilizing resources owned by the firm for its operations, instead of allocating them elsewhere to earn a return.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Accounting Profit

The difference between total revenue and explicit costs of a business.

Economic Profit

The profit a company makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of its resources.