The Consumer Price Index (CPI)equals 100 in Year One and 115

question 171

Multiple Choice

The consumer price index (CPI) equals 100 in year one and 115 in year two.If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI,what will be the nominal wage in year two?

• A) $13.04.
• B) $15.00.
• C) $15.15.
• D) $16.15.
• E) $17.25.

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Definitions:

Sale of Goods

A commercial transaction in which a seller transfers ownership of tangible personal property to a buyer for a price.

Duress

Compulsion by threat or force, often used in legal contexts where a person's action is excused because it was performed under coercion.

Coercion

Coercion refers to the practice of persuading someone to do something by using force or threats.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed to be enforceable.