I to Deflate Sales, the Actual Sales Are Multiplied by the Wholesale

question 52

Multiple Choice

i. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.
Ii) The CPI serves only one major function: as an economic indicator of the rate of inflation.
Iii) To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series.

• 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) (iii) is a correct statement, but not (i) or (ii).
• E) All statements are false

Understand the relationship between planning and controlling within the management functions.

Grasp the essence of planning in setting objectives and determining actions to achieve them.

Identify the importance of engaging multiple stakeholders in the planning process to enhance implementation and results.

Understand the concept of gains from specialization and trade.

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Definitions:

Short-Run Supply Schedule

A graphical or tabular representation of the quantity of goods a firm is willing and able to supply at different price points, over a short period.

Total Profit

The net amount of money a business retains after subtracting all its expenses, taxes, and costs from its total revenue.

MC Curve

Marginal Cost Curve, which shows the change in total cost that arises when the quantity produced changes by one unit.

AVC Curve

A graph representing the Average Variable Cost of producing different quantities of output, typically showing how AVC decreases and then increases.