Which of the Following Is True About the Consumer Price

question 166

Multiple Choice

Which of the following is true about the consumer price index (CPI) and the GDP price index?

• A) Both measures weigh prices by quantities consumed in some base year.
• B) Both yield identical numbers for price level changes for any two years.
• C) Both CPI and the GDP price index underestimate changes in the price level in an economy.
• D) The CPI measures changes in relative prices of goods, while the GDP price index measures changes in the absolute price level of a fixed basket of goods and services.
• E) CPI includes products that are widely used, while the GDP price index includes all goods and services.

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Definitions:

Breach Of Contract

The failure of one or more parties to fulfill the obligations stated in a contract without a lawful excuse.

Employment-At-Will Doctrine

A legal principle allowing the employment relationship to be terminated by either the employer or the employee at any time, for any reason not prohibited by law.

Public Policy

A system of laws, regulatory measures, courses of action, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives.

Contract Theory

The study of how contractual agreements are formed, validated, and enforced between parties.