Economics Flashcards
1
Q
What is CPI and what does it stand for?
A
Consumer Price Index - Measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
2
Q
Define the term “Externalities” within economics?
A
A cost or benefit imposed upon a party that did not agree to incur that cost or benefit.
For example, one company dumping their waste on the grounds of another company.
