The Table Below Shows Hypothetical Per- Minute Cell Phone Charges

question 41

Multiple Choice

The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. $$\begin{array}{l}\begin{array} { | l | l | } \hline 2005 & 0.55 \\\hline 2006 & 0.50 \\\hline 2007 & 0.40 \\\hline 2008 & 0.35 \\\hline 2009 & 0.25 \\\hline\end{array}\\\text { TABLE 2- } 2\end{array}$$
-Refer to Table 2- 2. Assume that 2005 is used as the base year, with the index number = 100. Which of the following series is the correct set of index numbers for the per- minute cell phone charges from 2005 to 2009?

• A) 1.0; 0.91; 0.73; 0.64; 0.45
• B) 100; 91; 73; 64; 45
• C) 0.55; 0.50; 0.40; 0.35; 0.25
• D) 100%; 91%; 73%; 64% 45%
• E) 55; 50; 40; 35; 25

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Definitions:

Disposable Income

The spendable income of households after income tax deductions tailored for saving and spending.

Disposable Income

The financial resources meant for household spending and saving after settling income taxes.

Saving

The act of setting aside a portion of current income for future use, either by holding the funds in cash or investing them.

Disposable Income

Spendable and savable funds available to households after the deduction of income taxes.