The Following Table Shows the Value of CPI for Three

question 53

Multiple Choice

The following table shows the value of CPI for three years in a country. Which of the following is the annual inflation rate for 2004?

• A) 4%
• B) 1.46%
• C) 3.36%
• D) 4.87%

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Definitions:

Sales Price

The price at which a product or service is offered for sale in the market.

Fixed Costs

Expenses that do not change with the level of production or sales, examples include rent, salaries, and insurance premiums.

Variable Cost

Expenses that change in proportion to the activity or volume of business, such as materials, labor, and transaction fees.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to represent wear and tear over time.