The Producer Price Index Is Often Regarded as a Warning

question 426

Multiple Choice

The producer price index is often regarded as a warning sign of inflation because:

• A)commodity producers are relatively quick to raise prices.
• B)producers are likely to have monopoly control over prices.
• C)consumers have to pay the prices charged.
• D)commodity producers can sell whatever they want at higher prices.

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Definitions:

NCI

Non-Controlling Interest; a minority stake in a subsidiary that is not owned or controlled by the parent corporation.

Ownership Interest

The right or stake that an individual or entity has in an asset, often implying a share of the asset's profits or losses.

Subsidiary

A company controlled by another company, often referred to as the parent company, through ownership of a majority of its voting stock.

Sub-subsidiary

A company controlled by a subsidiary of another company, creating a tiered structure of corporate ownership and governance.