Table 11-3
the Table Below Pertains to Studious, an Economy

question 413

Multiple Choice

Table 11-3
The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of a } \\\text { Buak }\end{array} & \begin{array} { c } \text { Price of a } \\\text { Calculator }\end{array} \\\hline 2006 & \$ 24 & \$ 8 \\\hline 2007 & \$ 30 & \$ 12 \\\hline 2008 & \$ 32 & \$ 15 \\\hline\end{array}$$
-Refer to Table 11-3. If 2008 is the base year, then the consumer price index was

• A)64.5 in 2006, 87.1 in 2007, and 100 in 2008.
• B)64.5 in 2006, 270 in 2007, and 310 in 2008.
• C)200 in 2006, 87.1 in 2007, and 100 in 2008.
• D)200 in 2006, 270 in 2007, and 310 in 2008.

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Definitions:

Transaction Date

The date on which an actual trade or financial deal occurs.

Reporting Period

The specific time span for which financial activities are recorded and reported in financial statements.

Monetary Items

Financial assets and liabilities that carry a fixed monetary value, such as cash, receivables, and payables.

Foreign Currency

Currency used in a country other than one’s own, requiring exchange rate conversion for transactions and financial reporting.