A Country Reports the Total Expenditures on the Fixed CPI

question 44

Multiple Choice

A country reports the total expenditures on the fixed CPI basket for the past three years. The cost of the CPI basket in 2016 was $23,000, the cost of the CPI basket for the reference base period, 2017, was $23,805, and the cost of the CPI basket in 2018 was $24,500. The CPI for 2018 is

• A) 245.0.
• B) 97.2.
• C) 106.5.
• D) 102.9.
• E) 93.9.

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Definitions:

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicle-related damages.

Precautions

Actions taken in advance to prevent potential undesirable outcomes or to minimize risks.

Moral Hazard

A situation where one party in a transaction has the opportunity to assume additional risks that negatively affect the other party because they do not bear the full consequences of their actions.

Contract Changes

Modifications or adjustments made to the terms, conditions, obligations, or rights within a contract between parties.