In 1974, One Could Buy a Theater for $1

question 338

Multiple Choice

In 1974, one could buy a theater for $1.25. Today the same theater ticket costs $6.50. Which pair of CPIs would imply that the cost in today's dollars was the same for both tickets?

• A) 60 in 1964 and 390 today
• B) 75 in 1964 and 390 today
• C) 80 in 1964 and 404 today
• D) 95 in 1964 and 475 today

---

Definitions:

Outstanding Checks

Checks issued by a company that have been recorded in its books but have not yet been cashed by the recipient.

Deposits In Transit

Deposits in transit refer to money that has been received and recorded by a business but not yet by its bank, often because of time needed for the banking processing.

NSF Check

A check that cannot be processed due to insufficient funds in the account it was drawn on, also known as a "bounced check."

EFT Deposit

An electronic funds transfer directly into a bank account, considered a safe and efficient way to transfer money.