When the CPI Is Less Than 100

question 71

Multiple Choice

When the CPI is less than 100:

• A) the cost of living has increased.
• B) the cost of living is lower than the base year.
• C) the cost of living is unchanged.
• D) we cannot make assumptions about the cost of living without more information.

---

Definitions:

Per Capita Income

A measure of the average income earned per person in a certain area in a specified year.

Economic Forces

Fundamental market pressures that influence the supply, demand, and pricing of goods and services within an economy.

Multinational Companies

Are corporations that operate in multiple countries aside from their home country, managing production or services across international borders.