The Formula for Calculating the CPI Is

question 135

Multiple Choice

The formula for calculating the CPI is

• A)(Expenditures in the current year/Expenditures in the base year)× 100.
• B)(Expenditures in the current year × Expenditures in the base year)/100.
• C)(Expenditures in the base year/Expenditures in the current year).
• D)(Expenditures in the base year × 100)/(Expenditures in the current year).

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Definitions:

Function

A relation between a set of inputs and a set of permissible outputs, typically defined by a rule that every input is related to exactly one output.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output generated from those inputs.

Marginal Product

The increase in output that results from a one-unit increase in the input of a particular resource, holding all other inputs constant.

Factor X

A hypothetical or unspecified factor in an equation, model, or situation that has an impact on the outcome but is not explicitly defined.