Which of the following statements would be involved in the calculation of a price index: Select one: a. Measures the cost of purchasing a market basket of output across different years. b. Always includes a base year, measures the cost of purchasing a market basket of output across different years, and is normalized to 100 for the base year. c. Is normalized to 100 for the base year. d. Always includes a base year.
Q-1) Which of the following statements would be involved in the calculation of a price index:
Select one:
a. Measures the cost of purchasing a market basket of output across different years.
b. Always includes a base year, measures the cost of purchasing a market basket of output across different years, and is normalized to 100 for the base year.
c. Is normalized to 100 for the base year.
d. Always includes a base year.
Q-2) Euro Canada Construction Corp. buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of tools to build 10 new homes in Port Coquitlam. Euro Canada Construction Corp sells these homes for $10 million. The value added by Euro Canada Construction Corp is equal to:
Select one:
a. $3.5 million.
b. $13 million.
c. $16.5 million.
d. $15.5 million.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
