Suppose the Consumer Price Index Was 100 in 2000 and 300

question 71

Multiple Choice

Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:

• A)increased by 20 percent during this period.
• B)increased by 100 percent during this period.
• C)increased by 200 percent during this period.
• D)increased by 300 percent during this period.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct labor and direct materials, such as utilities, depreciation, and maintenance of equipment.

Product Cost

The total of costs directly tied to the production of a product, including raw material, labor, and overhead.

Oil Lubricants

Substances applied to reduce friction and wear between surfaces in mutual contact, which ultimately extends the life of machinery.

Factory Plant

A facility where industrial or manufacturing processes occur, often including buildings and machinery.