Oranges Become More Expensive in 2008 at Ukrop's in Charlottesville,Virginia

question 43

Multiple Choice

Oranges become more expensive in 2008 at Ukrop's in Charlottesville,Virginia.This means

• A) the consumer price index (CPI)will rise in 2008 if,and only if,Charlottesville is one of the 38 indexed geographic locations and oranges are one of the 8,000 goods included in the CPI.
• B) the consumer price index (CPI)will almost certainly rise in 2008,even if Charlottesville is not included,as long as oranges are included and become more expensive on average at the other indexed locations.
• C) the consumer price index (CPI)will likely fall if the average weighted price of oranges increases in the United States and the price of oranges at Ukrop's makes almost no difference in the CPI.
• D) the consumer price index (CPI)might rise or fall and the price of oranges at Ukrop's could make a very small difference in the CPI if oranges at Ukrop's are included.However,oranges would be a relatively small portion of the entire CPI,if they are included in it at all.
• E) orange prices are never included in the consumer price index (CPI)because the creator of the CPI,Milton Marquis,did not like oranges.

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Definitions:

Senior Management

Refers to the highest level of managers within an organization who are responsible for making long-term strategic decisions.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not align with the calendar year.

Management By Objectives

A performance management approach where managers and employees work together to identify and set objectives that are tangible, verifiable, and measurable.

MBO Approach

Management by Objectives; a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.