Table 11-1
the Table Below Pertains to Pieway, an Economy

question 179

Multiple Choice

Table 11-1
The table below pertains to Pieway, an economy in which the typical consumer's basket consists of 10 bushels of peaches and 15 bushels of pecans. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of } \\\text { Peaches }\end{array} & \begin{array} { c } \text { Price of } \\\text { Pecans }\end{array} \\\hline 2005 & \$ 11 \text { per bushd } & \$ 6 \text { per bushel } \\\hline 2006 & \$ 9 \text { per bushed } & \$ 10 \text { per bushe } \\\hline\end{array}$$
-Refer to Table 11-1. If 2005 is the base year, then the inflation rate in 2006 was

• A)16.7 percent.
• B)20 percent.
• C)40 percent.
• D)44.1 percent.

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Definitions:

Skill-based Pay Systems

Compensation strategies where employees are paid based on the number, kind, or level of skills they possess, rather than their job title or position.

Job Enrichment

Empowering workers by adding more decision-making authority to jobs.

Piecework Plan

A compensation system where employees are paid a fixed rate for each unit of production or action they complete, encouraging productivity.

Pay Structure

An organizational system that categorizes employee compensation into levels based on job duties, seniority, and performance outcomes.