If Mustard Now Costs $0

question 115

Multiple Choice

If mustard now costs $0.75 when today's price index is 225,and if the price index in 1970 was 38,we would most accurately say that

• A) mustard cost about $4.44 in 1970.
• B) if mustard cost $0.10 in 1970,it was relatively cheap as an inflation-adjusted price.
• C) mustard cost about $0.20 in 1970.
• D) mustard's price would never increase at the same rate as inflation because it is a food item.
• E) ketchup would cost about $0.13 in 1970 because it typically costs about the same as mustard.

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Definitions:

Personal Property

Everything that can be owned other than real estate.

Fixture

An item of property that is attached to a structure or land in such a way that removing it would damage the property or deplete its value.

Evict Tenants

The legal process through which a landlord may remove a tenant from rental property, typically due to failure to abide by the rental agreement.

Lease Agreement

A contract specifying the terms under which one party agrees to rent property owned by another party.