John Is Creating a Presentation on the Consumer Price Index

question 217

Multiple Choice

John is creating a presentation on the consumer price index for his business class.He wants students to understand that food and energy prices have risen more rapidly than other market items that the government traditionally measures for inclusion in the CPI calculation.He will show students that the core inflation figure will be _______ than the CPI.He will then inform the class that if consumers begin substituting,for example: If the prices at full service hair styling salons get too exorbitant,consumers may substitute by going to cheaper hair cutting salons.This will make the ___________ calculation lower.

• A)higher;C-CPI
• B)lower;C-CPI
• C)lower,PPI
• D)higher,PPI

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Definitions:

Political Influence

The power to shape or control political actions, policies, or opinions.

Unmarried Women

Women who are not legally married and may refer to individuals who have never been married, are divorced, or are widowed.

Second Bank

The Second Bank of the United States, established in 1816 and operated until 1836, was central to early disputes over states' rights and federal power.

Constitutional Authority

The powers vested in a governmental body or official by a constitution, defining the scope and limits of their legal powers.