If the Consumer Price Index (CPI)was 100 in 2002 and 111.5

question 187

Multiple Choice

If the consumer price index (CPI) was 100 in 2002 and 111.5 in 2007,and a typical household's income was $35,000 in 2002 and $37,000 in 2007,then between 2002 and 2007,real household income

• A) increased.
• B) decreased.
• C) was constant.
• D) may have increased or decreased.
• E) can not be determined.

---

Definitions:

Profitability Analysis

The process of evaluating the ability of a business to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Cost Of Goods Sold

The cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total sales revenue.

Ratio

A quantitative relationship between two numbers, often used in financial analysis to assess performance, financial health, and operational efficiency.