If the Basket of Goods and Services Used to Calculate

question 173

Multiple Choice

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

• A) 200.
• B) 225.
• C) 325.
• D) 450.

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Definitions:

Drop Shipment

A logistics method where the seller does not keep goods in stock but instead directly transfers customer orders and shipment details to a third party, who then ships the goods directly to the customer.

Cross-docking

A logistics practice where incoming shipments are directly transferred from inbound to outbound vehicles, minimizing storage time and reducing handling costs.

Blanket Order

A long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.

Keiretsu

A set of companies with interlocking business relationships and shareholdings in Japan, forming a tight-knit alliance to work toward mutual success.