One Reason the CPI Is Monitored Very Closely by Government,businesses,and

question 149

Multiple Choice

One reason the CPI is monitored very closely by government,businesses,and workers is that:

• A)It indicates whether we are running a budget surplus or a deficit.
• B)Some wages,interest rates,tax rates,and government benefits are tied to changes in the value of the CPI.
• C)It is the best measure of worker productivity in the service sector.
• D)The gross domestic product is computed from the reported increases in the CPI.

Apply motivational theories to predict the effectiveness of different needs in managerial and sales positions.

Differentiate between elastic, inelastic, and unitary demand.

Apply the midpoint formula for calculating elasticity.

Recognize the importance of percentage changes in price and quantity in determining elasticity.

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Definitions:

Direct Foreign Investment

Funding provided by an individual or a company based in one country to start or acquire business operations and assets in another country.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated by adding up all market values of goods and services produced within the country in a year.

Private Capital Flows

Financial resources transferred between countries by private sector entities through direct investments, portfolio investments, and other forms of capital movements.

Direct Foreign Investment

An individual or company from one nation investing in business interests or assets in a different country, which includes starting up operations or buying business holdings.