The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:

When the consumer price index falls, the typical family

a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can save less because they do not need to offset the effects of rising prices.

Which of the following is true?

A) Compound interest means that you are earning interest on the principal but not prior interest earned. B) All of the above are true. C) The law of compound interest highlights the importance of beginning to save at a young age. D) Assume a 7 percent rate of interest and a price of $6 per pack of cigarettes. Smoking one pack of cigarettes per day for 50 years will cost the smoker $109,500 (=$6 365 days50 years).