Table 11-6 -Refer to Table 11-6

question 318

Multiple Choice

Table 11-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. $$\begin{array} { l c c } \hline \text { Year } & \text { Priee of hamburegers } & \text { Prife of hat doges } \\\hline 2009 & \$ 5.00 & \$ 3.00 \\2010 & 5.50 & 3.30 \\2011 & 5.61 & 3.63 \\\hline\end{array}$$
-Refer to Table 11-6. If the base year is 2009, then the economy's inflation rate is

• A)10 percent in 2010 and 6.36 percent in 2011.
• B)10 percent in 2010 and 17 percent in 2011.
• C)9.2 percent in 2010 and 6 percent in 2011.
• D)8.22 percent in 2010 and 5 percent in 2011.

---

Definitions:

Growth

An increase in size, amount, or degree, often used in the context of business or economic indicators like sales, revenues, or GDP.

Receivables

Receivables are amounts owed to a company by its customers or debtors for goods or services delivered but not yet paid for.

Factoring

The financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in order to raise immediate capital.

Note Maturity

Note maturity refers to the date on which a debt instrument, such as a bond or promissory note, reaches its due date and the principal is to be paid to investors.