Use the Table Below to Answer the Following Questions

question 33

Multiple Choice

Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.

-Refer to Table 21.3.1.The reference base period is 2002.Which one of the following statements is true?

• A)From 2002 to 2012, the cost of the market basket rose by 58 percent.
• B)It costs 158 times more in 2012 than it does in 2002 to buy the same market basket.
• C)All prices have risen by the same amount.
• D)The inflation rate in 2012 is greater than the inflation rate in 2002.
• E)The inflation rate in 2002 is greater than the inflation rate in 2012.

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Definitions:

US GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of standards and procedures that companies must follow in their financial reporting.

CPA Canada Handbook

A comprehensive guide that includes standards and guidelines for financial and management accounting practices in Canada.

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.