Suppose Total Expenditures for a Typical Household in 2011 Were

question 148

Multiple Choice

Suppose total expenditures for a typical household in 2011 were $2,000 per month and that the cost of purchasing exactly the same items in 2012 was $2,500 per month.If 2011 is the base year,the consumer price index (CPI) for 2012 equals

• A) 142.
• B) 125.
• C) 100.
• D) 80.
• E) 64.

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Definitions:

2/10 Net 30

A common payment term indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the net (full) amount is due within 30 days.

Trade Discount

A reduction in the listed price of goods or services provided by the seller to those in the same trade or industry.

Retail List Price

The manufacturer's suggested retail price for a product, which is often higher than the actual selling price in stores.

Best-Selling Grass Seed

A type of grass seed that has achieved high sales volumes and popularity due to its quality, resilience, or suitability for various climates or soils.