Suppose That 1982 Is the Base Year for the Consumer

question 24

Multiple Choice

Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2007 the CPI was 190.What does this "190" mean?

• A) What cost $100 in 1982 on average cost 190 times as much in 2007.
• B) What cost $100 in 1982 on average cost $190 in 2007.
• C) What cost $100 in 1982 on average cost 0.19 times as much in 2007 (that is, it cost $19 in 2007).
• D) What cost $100 in 1982 on average cost $19 more in 2007.

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Definitions:

Multiple Owners

A business structure where two or more individuals share ownership and responsibilities of managing the business.

Limited Liability Company

A business structure in the United States whereby the owners are not personally liable for the company's debts or liabilities.

Tax Treatment

The manner in which an item or transaction is taxed by authorities, affecting how it is reported and what deductions or credits may apply.

Limited Liability

A legal structure for businesses where owners' personal assets are protected from the company's debts and liabilities.