The CPI for "Personal Computers and Peripheral Equipment" in July

question 58

Multiple Choice

The CPI for "personal computers and peripheral equipment" in July of 2001 was 29.3 (1982-1984 = 100) . Interpret this index.

• A) There was no significant increase in the price of "personal computers and peripheral equipment"
• B) The price of "personal computers and peripheral equipment" increased 29.3%.
• C) The price of "personal computers and peripheral equipment" decreased 70.7%.
• D) If the average price of a computer in 1982-1984 was $879.00, the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in July 2001 would be $3,000.00.
• E) The price of "personal computers and peripheral equipment" decreased 29.3%.

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Definitions:

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership equity.

Net Income

The amount of money a firm earns after deducting all its expenses, taxes, and costs from its total revenue, indicating its profitability during a specific period.

Inventory On Credit

This refers to inventory purchased by a company for which payment is deferred to a later date, typically impacting the accounts payable.