I Millions of Employees in Automobile, Steel and Other Industries

question 19

Multiple Choice

i. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses."
Ii) If two or more series of index numbers have the same year as the base period, then they can be compared directly.
Iii) When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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Definitions:

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