If the Consumer Price Index (CPI)had a Value of 128

question 132

Multiple Choice

If the Consumer Price Index (CPI) had a value of 128 in year Z,this means that during the period between the base year and year Z:

• A) All prices increased by 28 percent.
• B) All prices increased by an average of 1.28 percent.
• C) Prices of goods and services that the typical consumer buys increased by an average of 28 percent.
• D) Prices of goods and services that the typical consumer buys increased by an average of 128 percent.

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Definitions:

Metaphysics

A branch of philosophy concerned with the nature of reality, existence, and the fundamental nature of being and the world.

Scientific Theories

Well-substantiated explanations of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experimentation.

Parsimonious

Characterized by extreme unwillingness to spend resources or use more of something than necessary, often used in the context of scientific modeling.

Heuristic

An approach to problem solving or learning that employs a practical method not guaranteed to be perfect, but sufficient for reaching an immediate goal.