YearCPI2010952011100201210520131042014106According to the table shown, what can be said about the cost of living in 2012?
A. Every consumer will experience a 5 % increase in his cost of living from 2011.
B. The typical consumer must spend 5 % more in 2012 than he did in 2011 in order to buy the same goods.
C. Whatever consumers bought in 2012 cost 5% more than what they spent in 2011.
D. None of these statements is true.
Answer: B
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If a country runs a trade deficit to finance increased current consumption, it will have to increase consumption in the future to pay back its borrowings
Indicate whether the statement is true or false
Refer to Table 14-1. Let's suppose the game starts with each firm adhering to its original budget so that Godrickporter earns a profit of $6,000 and Star Connections earns a profit of $12,000
Is there an incentive for any one firm to increase its advertising budget? A) No, neither firm has an incentive to raise its advertising budget. B) Yes, Godrickporter has an incentive to increase its advertising budget, but Star Connections does not. C) Yes, Star Connections has an incentive to increase its advertising budget, but Godrickporter does not. D) Yes, both firms have an incentive to raise their advertising budgets.