For an Imaginary Economy,the Consumer Price Index Was 80 in 2014,100

question 150

Multiple Choice

For an imaginary economy,the consumer price index was 80 in 2014,100 in 2015,and 140 in 2016.Which of the following statements is correct?

• A)If the basket of goods that is used to calculate the CPI cost $40 in 2014,then that basket of goods cost $60 in 2015.
• B)If the basket of goods that is used to calculate the CPI cost $25 in 2015,then that basket of goods cost $35 in 2016.
• C)The overall level of prices increased by 60 percent between 2014 and 2016.
• D)All of the above are correct.

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Definitions:

Payment to Labor

Compensation provided to employees in the form of wages, salaries, bonuses, and benefits for their work and services.

Marginal Revenue Product

Marginal Revenue Product (MRP) is the additional revenue generated from employing one more unit of a resource, such as labor or capital.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, keeping other inputs constant.

Package Store

A retail store that sells bottled or packaged alcoholic beverages for consumption off the premises, commonly found in some regions of the United States.