Suppose That a Price Index for a Certain Basket of Goods

question 21

Multiple Choice

Suppose that a price index for a certain basket of goods and services has a value of 150 in 2009 and a value of 156 in 2010. This index suggests that the cost of the market basket of goods and services

• A)was approximately the same in 2010 and 2009.
• B)was 156 percent higher in 2010 than in 2009.
• C)was four percent higher in 2010 than in 2009.
• D)was six percent lower in 2010 than in 2009.
• E)was six percent higher in 2010 than in 2009.

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Definitions:

Ownership of the Business

The legal state or condition of having control over a company or entity, including the rights to make decisions and enjoy the profits.

Franchisee

An individual or company that is granted the right by a franchisor to operate a business under the franchisor's trademark and business model.

Franchisor

The original or existing business that allows another party (franchisee) to use its trademark and business model.

Lunch Truck

A mobile vehicle equipped to prepare, cook, and sell food, often found at workplaces or public events.