Suppose a Basket of Goods and Services Has Been Selected

question 64

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year.In 2012,the basket's cost was $80.00;in 2013,the basket's cost was $84;and in 2014,the basket's cost was $87.60.The value of the CPI was

• A)100 in 2012.
• B)105 in 2013.
• C)109.5 in 2014.
• D)All of the above are correct.

Distinguish between various cost systems and their appropriate application environment.

Identify the flow and management of costs in manufacturing operations.

Understand the concept of structural unemployment and its causes.

Distinguish between disinflation, deflation, and the conditions that contribute to each.

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Definitions:

Disbursement Float

Disbursement float refers to the time delay between writing a check and the time the funds are actually withdrawn from the payer's account.

Chequing Account

A type of bank account that offers easy access to funds for daily transactions, allowing for deposits, withdrawals, and cheque payments.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.

Safety Stock

Extra inventory maintained to guard against stockouts due to variance in supply or demand.