-In 2008, Consumers in Dexter Consumed Only Books and Pens

question 301

Multiple Choice

-In 2008, consumers in Dexter consumed only books and pens. The prices and quantities for 2008 and 2009 are listed in the table above. The reference base period for Dexter's CPI is 2008. What is the CPI in 2008?

• A) 1.00
• B) 320
• C) 100
• D) 3.20

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Definitions:

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Long-Term Investments

Assets that a company intends to hold for more than a year, such as stocks, bonds, real estate, and investment in subsidiary companies, which are not easily converted into cash.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits.

Gain Potential

The possible financial profit that can be achieved from an investment, considering the risk and opportunity cost.