The Consumer Price Index Is

question 21

Multiple Choice

The consumer price index is

• A) a monthly price index that is designed to measure changes in prices for goods sold in primary markets.
• B) a quarterly price index that uses 100 as a base.
• C) a monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time.
• D) another name for the Paasche index.

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Definitions:

Machine Language

The fundamental language consisting of binary code that can be directly understood and executed by a computer's central processing unit (CPU).

Pascaline

An early mechanical calculator invented by Blaise Pascal in the 17th century, capable of performing addition and subtraction.

Main Memory

The primary storage area in a computer where data and programs that are in active use are stored; also known as RAM (Random Access Memory).

Central Processing Unit

The primary component of a computer that performs most of the processing inside a computer, executing instructions from programs.