Suppose the CPI for This Year Is 133

question 189

Multiple Choice

Suppose the CPI for this year is 133.7.This number means that

• A)on average,goods cost $133.70 each this year.
• B)prices rose 33.7 percent over the last year.
• C)prices rose 133.7 percent over the base year.
• D)prices rose 33.7 percent over the base year.
• E)prices rose 133.7 percent over the last year.

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Definitions:

Basing-Point Pricing

Selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer.

Uniform Delivered Pricing

A pricing strategy where a company charges the same shipping price to all customers, regardless of their geographic location.

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another, which can include freight charges, warehousing, and handling fees.

Fixed Allowance

A predetermined amount of money provided regularly, often for specific purposes like travel expenses, without the need to account for actual expenses.