If in Switzerland in January, 2009 the CPI Was 187

question 2

Multiple Choice

If in Switzerland in January, 2009 the CPI was 187.4 and in January, 2010 it was 191.1, then the inflation rate in 2010 was

• A)1.9 percent.
• B)-1.9 percent.
• C)3.7 percent.
• D)unknown without the base period index number.
• E)unknown without the real prices.

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Definitions:

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.

Variable Costs

Costs that change in proportion to the level of production or activity, such as materials and labor.

Sales

The transactions involving the exchange of goods or services for money.

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is left over after variable costs to cover fixed costs and generate profit.