Suppose a Market Basket of Goods and Services Costs $400

question 110

Multiple Choice

Suppose a market basket of goods and services costs $400 in the base year and $500 this year. The consumer price index (CPI) for this year is:

• A) 25.
• B) 100.
• C) 125.
• D) 500.

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Definitions:

Raw Materials

Basic materials from which products are made, including metals, plastics, textiles, and natural resources.

Short-term Contracts

Employment agreements with a limited duration, typically less than one year.

Product Layout

An arrangement where workstations or machinery are sequenced according to the steps in which a product is made, facilitating a continuous flow of production.

Supply Sources

Supply sources are origins or places from which goods, materials, or resources are obtained to fulfill the needs of production or consumption.