If the CPI Equaled 1

question 75

Multiple Choice

If the CPI equaled 1.00 in 1995 and 1.65 in 2005 and a typical household's income equaled $35,000 in 1995 and $40,000 in 2005, then between 1995 and 2005, real household income:

• A) increased.
• B) decreased.
• C) was constant.
• D) may have either increased or decreased.

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Definitions:

Business Ecosystem

An economic community supported by a foundation of interacting organizations and individuals—the organisms of the business world.

Economic Community

A group of countries or regions that form an agreement to promote economic cooperation and integration among its members, often through trade liberalization, common policies, and shared goals.

Corner Store Site

The location of a small retail business, typically situated on the corner of streets in urban or suburban areas, serving the immediate neighborhood.

Web Site

A location connected to the Internet that maintains one or more pages on the World Wide Web.