Exhibit 13-1 Consumer Price Index
Year
ConsumerPrice Index
1
100
2
110
3
115
4
120
5
125
As shown in Exhibit 13-1, the rate of inflation for Year 2 is:
A. 5 percent.
B. 10 percent.
C. 20 percent.
D. 25 percent.
Answer: B
You might also like to view...
According to your text, competition generally requires
A) fixed costs. B) fixed prices. C) fixed profits. D) detailed government regulation. E) none of the above.
The "lemons problem" exists in the market for goods because
A) sellers tend to try to take advantage of buyers. B) buyers tend to try to take advantage of sellers. C) differences in the quality of the goods being exchanged. D) of moral hazard.
An increase in the number of consumers in a market would cause
A) an increase in quantity demanded. B) an increase in quantity supplied. C) an increase in demand. D) an increase in supply.
Poor economies may have difficulty growing because
a. their production possibilities curves slope upward instead of downward b. they cannot cut back on their production of consumption goods to increase their production of capital goods c. they have a solid consumption base already in place d. their resource bases are fully developed e. the law of increasing costs makes it hard to produce more goods