Suppose That the Total Expenditures for a Typical Household in 2015

question 61

Multiple Choice

Suppose that the total expenditures for a typical household in 2015 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2017 was $3,000. If 2015 is the base year, the CPI for 2017 equals:

• A)0.83
• B)1.00
• C)1.20
• D)1.25

---

Definitions:

Global Business

The conduct of trade, production, marketing, and sales operations on a worldwide scale, transcending national borders.

National Boundaries

The defined geographical limits of a nation, separating it from neighboring countries and marking the extent of its jurisdiction and sovereignty.

Ethical Standards

The principles that guide behavior and decision-making based on notions of right and wrong.

Risk Compartmentalization

The division of risks into different categories or compartments in an organization, which can lead to disjointed risk management and a failure to recognize the aggregate extent of risks.