The Price Index in the First Year Is 120, in the Second

question 157

Multiple Choice

The price index in the first year is 120, in the second year is 150, and in the third year is 180. What is the inflation rate between the first and second year and between the second and third year?

• A) 20 percent between the first and second year, 33 percent between the second and third year
• B) 25 percent between the first and second year, 20 percent between the second and third year
• C) 25 percent between the first and second year, 50 percent between the second and third year
• D) 30 percent between the first and second year, 30 percent between the second and third year

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Definitions:

Inventory

The quantity of goods or materials in stock, either raw materials, work-in-progress, or finished goods, held by a business.

Competitive Strategy

The plan and actions taken by a company to attract customers and defend against competitors.

Product Cost

The total expense incurred in manufacturing or acquiring a product, including materials, labor, and overhead.

Delivery Time

The period it takes for a product or service to be delivered to a customer after an order has been placed.