The Price of a McDonald's Hamburger in 1955 Was $0

question 54

Multiple Choice

The price of a McDonald's hamburger in 1955 was $0.15 when the price index was 27; if in 2011 it was $0.89 when the price index was 220,then adjusted for inflation,the price of a McDonald's hamburger in 2011 was

• A) almost exactly the same (within 10 percent)as in 1955.
• B) much higher (twice or more)than in 1955.
• C) much lower (half or less)than in 1955.
• D) a bit higher than in 1955.
• E) a bit lower than in 1955.

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Definitions:

Collection Indorsement

An endorsement on a negotiable instrument, such as a check or promissory note, that specifies the particular person to whom the payment is to be made.

Fictitious Payee Rule

A principle in commercial law that protects the drawer of a check if the check is made payable to a non-existent or not intended recipient, under certain conditions.

Bookkeeper

A person responsible for recording the financial transactions and maintaining the financial records of a business.

Negotiable Instruments

Written documents that guarantee the payment of a specific amount of money to the bearer or to a specific person, under certain conditions.