Suppose That the Consumer Price Index Rose by 3% from 2013

question 30

Multiple Choice

Suppose that the consumer price index rose by 3% from 2013 to 2014.Suppose that the price of a pizza increased by 5% during that time.Which of the following is TRUE?

• A) The nominal price of pizza decreased.
• B) The real price of pizza increased.
• C) The real price of pizza did not change.
• D) The real price of pizza decreased.

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Definitions:

Statute of Limitations

A statute defining the ultimate period post-event for the start of legal actions.

Mootness Doctrine

A legal principle stating that a court will not hear a case if the issue has already been resolved or is no longer relevant.

Product Liability

Pertains to the legal responsibility of manufacturers, wholesalers, or retailers for injuries caused by defects or dangers in products they make available to consumers.

Unconscionability

A legal doctrine that refers to terms in a contract that are extremely unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.