1) CONSUMER CHOICE: Please go to the USDA ERS https://www.ers.usda.gov/data-products/food- price-outlook/ to answer the following questions: (10 points total) a) What is the current percentage of food consumed at home vs. away from home (this is listed as Relative Importance)? How has this changed in the past two years and why? (Refer to notes from class). Is the inflation rate higher for food at home or food away from home, and what are CPIs for both as compared to February 2022? b) How did the CPI for food change between 2021 and 2022? How does the CPI for those years compare to the 20-year historical average? c) The last column of the database shows the Forecast Range for 2023. Which food categories have the highest projected price increase for 2023 and what is the forecast? Which food category has the lowest projected price change for 2023 and what is that price change? d) Generally, what does the Consumer Price Index tell us? 2) ECONOMIC PRINCIPES: Describe a recent economic decision you made and identify the key economic principle(s) embedded in that decision, using terminology you have learned so far in the course. (3 points) 3) INFLATION: The most recent survey by Cal Poly Career Services showed that 2020 AGB graduates had a median starting salary of $59,300. Assume that the annual projected CPI is 6.2%. For the year you plan to graduate (2023, 2024, 2025, or 2026) please calculate the average salary required to maintain to maintain the same level of buying power as 2020 graduates. Please show your work. (3 points) 4) PRODUCTION: Please go to the USDA ERS interactive chart: https://public.tableau.com/views/Pricespreadsforindividualfoodproducts/Pricespreadsforindividualfo odproducts?:showVizHome=no Choose a food product from the dropdown list that begins with the first initial of either your first or last name (or as close to that part of the alphabet as possible). (4 points) a) What is the price spread for the most recent year reported? b) Has it increased or decreased over the time period shown? c) Is it greater or less than the average for all US farm products, and why do you think that is? (Refer to the food marketing dollar) d) What is the inflation rate for the retail price food product you have reported on over the period shown? Show your work.