Suppose That the Total Expenditures for a Typical Household in 2010

question 142

Multiple Choice

Suppose that the total expenditures for a typical household in 2010 equaled $5,500 per month, while the cost of purchasing exactly the same items in 2015 was $6,875.If 2010 is the base year, the CPI for the year 2015 equals:

• A)0.80
• B)1.00
• C)1.20
• D)1.25

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Definitions:

Parol Evidence Rule

a legal principle that prevents the parties of a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary contractual terms.

Main Purpose

The primary objective or aim intended to be achieved by something or someone.

Collateral Contract

A secondary agreement made in addition to a primary contract, which induces a party to enter into the primary contract.

Leading Object Rule

A legal principle in contract law used to determine whether a promise is enforceable under the Statute of Frauds.