I Besides Measuring Change in the Prices of Goods and Services

question 33

Multiple Choice

i. Besides measuring change in the prices of goods and services, the consumer price indexes have a number of other applications. The CPI is used to determine real disposable personal income, deflate sales or other series, find the purchasing power of the dollar and establish cost of living increases.
Ii) The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator.
Iii) To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.

• 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:

Psychological

Pertaining to the mind or mental processes, often in relation to behavior and feeling.

Physical

Relating to the body as opposed to the mind or emotional state, often concerning fitness, health, or appearance.

Abstract

Pertaining to thoughts or concepts that are not concrete or tangible, often involving complex ideas or theoretical thinking.

Visual Self-recognition

The ability to recognize oneself in a mirror or photograph, typically developing in humans around 18-24 months of age.