Chapter 1

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nation's _____ GDP.

real

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

A "mixed economy" is an economic system that:

Combines private and government ownership of the factors of production

The ____ represents the prices of a market basket of goods and services are measured monthly by the Department of Labor.

Consumer price index (CPI)

___ inflation is triggered by increases in production costs which increase the costs of final goods and services.

Cost-push

The standard of living in any country is:

Measured by the output of goods and service people can buy with the money they have

Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in a three-month period can receive a $20 reward good for the purchase of additional Office Depot merchandise. Customers who spend between $300 and $499 receive a $30 reward and those who spend more than $500 quarterly receive a $50 reward. The goal of this _____ program is to encourage customers to consolidate their office product purchases at Office Depot.

Relationship Management

Which of the following is the BEST example of a not-for-profit business?

The American Cancer Society

The situation in which the average of all prices of products is rising is called inflation.

True

The two types of inflation are:

demand-pull and cost-push