If the CPI Has a Value of 115 Today and the Base

question 8

Multiple Choice

If the CPI has a value of 115 today and the base year is 2014, then consumer prices have

• A)increased by 15 per cent since the base year.
• B)increased by 1.5 per cent since the base year.
• C)more than doubled since the base year.
• D)declined 15 per cent since the base year.

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Definitions:

Rawlsian Justice

A theory of distributional justice that concludes that the social contract emerging from the “original position” would call for an income distribution that would maximize the well-being of the worst-off member of society.

Risk Averse

A preference for avoiding loss over making a gain.

Marginal Utility

The extra pleasure or benefit gained from using one more unit of a product or service.

Utilitarian Justice

A principle focusing on the greatest happiness or benefit for the greatest number of people as the measure of what is just.