If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 to purchase those identical goods in 2015, then the inflation rate from 2014 to 2015 is
A. (110-100)/100*100%=10%.
B. (100-100)/100*100%=0%.
C. (100-90.9)/100*100%=9.1%.
D. unknown given this data.
Answer: A
You might also like to view...
If Taco Bell determines that the demand for its food is elastic, Taco Bell should raise its price to increase its total revenue
Indicate whether the statement is true or false
The optimal amount of social regulation occurs where the marginal benefit of such regulation:
A. equals the marginal cost. B. exceeds the marginal cost by the greatest amount. C. is zero. D. is at its maximum.
In an economic model, assumptions
A. are not important in determining the usefulness of the model. B. must be applicable to all real-world situations. C. must be eliminated before being used to make sure the model is realistic. D. define the set of circumstances in which the model is most likely to be applicable in the real world.
Equity finance is represented by which of the following?
A) when a firm borrows money from banks B) when a firm sells bonds C) when a firm sells shares of stock D) when a firm draws down retained earnings E) when a firm sells off part of its capital stock