To Compute the CPI,the Bureau of Labor Statistics (BLS)compiles a "Basket

question 53

Multiple Choice

To compute the CPI,the Bureau of Labor Statistics (BLS) compiles a "basket of goods" that ________;each price in the index is weighted by ________.

• A)are produced in the United States;an expenditure survey
• B)the average farmer produces;how long it takes for the particular good to reach the market
• C)the average urban consumer buys;the quantity of the good that goes into the basket
• D)only members of congress purchase;a "luxury" score
• E)is typical of consumers below the poverty line;the perceived quality of the good

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Definitions:

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is used.

Financing Charges

Interest and other costs associated with borrowing funds or purchasing goods and services on credit.