Measurement of Economic Values After Adjustments Have Been Made for Changes

question 12

Multiple Choice

Measurement of economic values after adjustments have been made for changes in the average of prices between years in known as

• A) the price index.
• B) a deflator.
• C) nominal values.
• D) real values.

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Definitions:

Technological Improvement

Advances in technology that enhance productivity, efficiency, or quality in the production of goods or services.

Cost of an Input

The cost of an input refers to the amount of money expended on resources needed to produce a good or service.

Number of Buyers

A factor that affects market demand, representing how many consumers are interested in purchasing a particular good or service.

Change in Supply

The shift in the quantity of a good that suppliers are willing and able to sell, influenced by factors like costs of production, technology, or expectations of future prices.