Which of the Following Statements Highlights the Difference Between the CPI

question 8

Multiple Choice

Which of the following statements highlights the difference between the CPI (consumer price index) and the GDP deflator?

• A) The CPI measures the average prices of inputs in the production process, whereas the GDP deflator measures the average prices of goods purchased by consumers.
• B) The CPI measures the average prices of retail goods, whereas the GDP deflator measures the average prices of wholesale goods.
• C) The CPI measures the average prices of typical goods consumed by consumers, whereas the GDP deflator measures the average prices of all goods consumed by all agents in the economy.
• D) The CPI measures the average prices of all final goods consumed by consumers, whereas the GDP deflator measures the average prices of all inputs used in the economy.

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Definitions:

Total Job Cost

The sum of all costs assigned to a specific job or project, including direct materials, direct labor, and applied manufacturing overhead.

Overhead Applied

The allocation of indirect costs to products, jobs, or activities based on a predetermined rate.

Job A496

A specific work order or project identifier used to track and manage a particular job within a company.

Total Job Cost

The complete cost of a specific job or project, including materials, labor, and overhead.