What Is the Goal of the Consumer Price Index

question 70

Multiple Choice

What is the goal of the consumer price index?

• A) to measure changes in the costs of production
• B) to measure changes in the cost of living
• C) to measure changes in the relative prices of consumer goods
• D) to measure changes in the production of consumer goods

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Definitions:

Investment Center

A division or unit within a company that is responsible for its own revenues, expenses, and assets, and its performance is evaluated on its return on investment.

Generates Revenue

Activities or processes that result in the earning of income for a business through the sale of goods or services.

Incurs Costs

To undergo or suffer expenses during the execution of activities or operations.

Profit Center

A business segment or department within an organization that is responsible for generating its own revenue and thereby directly impacting profitability.