Suppose the Typical Household Spends $3,500 on Goods and Services

question 170

Multiple Choice

Suppose the typical household spends $3,500 on goods and services during the month of January,and $4,300 on the same goods and services in February.Using January as the base period,what is the consumer price index for February?

• A)151.4
• B)81.4
• C)55.1
• D)122.9

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Definitions:

Prospect Theory

Prospect Theory is a behavioral economic theory that describes how people choose between probabilistic alternatives involving risk, where the probabilities of outcomes are known.

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are unknown.

Behavioral Economists

Scholars examining how psychological, cognitive, emotional, cultural, and social influences affect the financial choices of individuals and organizations.

Gains

Increases in economic benefits, such as profits, revenue, or utility.