The Consumer Price Index Is Used to

question 6

Multiple Choice

The consumer price index is used to

• A)convert nominal GDP into real GDP.
• B)turn dollar figures into meaningful measures of purchasing power.
• C)characterize the types of goods and services that consumers purchase.
• D)measure the quantity of goods and services that the economy produces.

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Definitions:

Land Rent

The payment made for the use of land or real estate.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Usury Laws

Legislation enacted to place a limit on the interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

Below-Market Interest Rate

An interest rate lower than the current market, usually subsidized by a government or institution.