Question

When a manufacturing company raises prices for its products, it's a reflection of a/an

A. decrease in consumer price index (CPI).

B. increase in producer price index (PPI).

C. increase in balance of trade (BOT).

D. decrease in balance of payments (BOP).

Answer 1

B. increase in producer price index (PPI).

Step-by-step explanation:

A producer price index is an index that measures the rate of change in prices received by domestic producers for their products. When PPI increases, the price of the good increases too.

Balance of trade is the difference between import and export.

Balance of payment is the record of all economic transactions between an economy and other economies within a given period.

A Consumer Price Index measures the rate of change in the price level of a weighted average market basket of consumer products.

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