According to the Consumer Price Index (CPI),in a Particular Year,the

question 33

Multiple Choice

According to the consumer price index (CPI) ,in a particular year,the price of gasoline rises in the United States by 22%; simultaneously,the price of all food items falls by 8%.Which statement is correct?

• A) If gasoline prices rise in more of the 38 geographical locations than those in which it stays the same or falls, the food price changes are irrelevant.
• B) This means that the price of gasoline must have increased in more of the 38 geographical locations where the CPI is measured and food prices must have fallen in more of those 38 locations.
• C) Based solely on the information given, we cannot conclude what happened to the CPI.
• D) This means that the price of gasoline and food rose in every geographic location where the CPI is measured.
• E) This means that the price of gasoline and food rose in every place where gasoline and food are sold in the United States during that year.

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Definitions:

Tiered Corporate Group

A hierarchical structure where a parent company controls subsidiary companies, which in turn may control their own subsidiaries, creating multiple levels of entity relationships.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.

Sequential Consolidation Method

A process of combining financial statements of a parent company and its subsidiaries one at a time in a specific sequence.

Disadvantages

Refers to the drawbacks or limitations that may hinder success or efficiency in a specific context.