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torisob [31]
4 years ago
12

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as

the base year. In 2002, the basket’s cost was $76.00; in 2004, the basket’s cost was $79.50; and in 2006, the basket’s cost was $85.00. The value of the CPI (rounded up) was: Group of answer choices no more than 90 in 2001. at least 118 in 2007. 120 in 2006. 90 in 2002. 105 in 2004.
Business
1 answer:
Andrews [41]4 years ago
8 0

Answer:

105 in 2004.

Explanation:

year                      basket price                  CPI

2002                       $76.00                        100

2004                       $79.50                        105

2006                       $85.00                        112

2004 CPI = $79.50 / $76 = 1.05 x 100 = 105

2006 CPI = $85 / $76 = 1.12 x 100 = 112

The consumer price index (CPI) measures the weighted average of the prices of a basket of goods and services in 21 urban centers in the US (each urban center includes more than 1 city, some include several). The information is gathered, processed and presented by the US Bureau of Labor Statistics (BLS). The CPI is used an an economic indicator (used to calculate inflation rate), or deflator, and to adjust the value of the US dollar (e.g. adjusting social security payments).

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Answer:

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Explanation:

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In the question, no specific question was asked. But I think the question is about the benefits of international trade.

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A higher level of material well being : international trade leads to increased standard of living among nations of the world. In the sense that, it increases output and the opportunity to acquire goods that we would otherwise have been unable to produce ourselves, it would lead to increase in national income which will in turn lead to increased in investment which will enhance the welfare of all citizens

Reducing the threat of war: international trade bring about a better understanding among nations of the world. It promotes international friendship and world peace.

Deterring monopoly : international trade helps in preventing monopoly by ensuring that goods comes from other countries of the world.

Promoting competition : international trade helps in promoting competition among nations of the world. In the sense that,countries compete for trade in order to increase their own volume of the world trade as a measure to avoid balance of payment deficit.

Gains from specialization : international trade help countries to specialize in commodities which they can best produced. It leads to increased output and employment throughout the world from which every nation can benefit.

A more efficient allocation of resources : international trade help countries to allocate their resources efficiently. In the sense that, each country will specialize in the production of those commodities in which the country has comparative cost advantage over other countries by directing their resources to those areas of comparative lower cost, world output will be increased.

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