The Consumer Price Index for Planet Econ Consists of Only

question 53

Multiple Choice

The consumer price index for Planet Econ consists of only two items: books and hamburgers.In 2010, the base year, the typical consumer purchased 10 books for $25 each and 25 hamburgers for $2 each.In 2015, the typical consumer purchased 15 books for $30 each and 30 hamburgers for $3 each.The consumer price index for 2015 on Planet Econ equals:

• A)1.00
• B)1.15
• C)1.25
• D)1.45

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Definitions:

Securities

Marketable securities embodying equity in publicly-operated corporations, claims of debt owed by governments or firms through bonds, or opportunities for ownership via options.

Original Sale

The first sale of an item or property after its initial acquisition or production.

Financial Engineering

The use of mathematical techniques to solve financial problems, including designing new financial products and strategies.

Securities

Securities that signify ownership stakes in companies (equities), lending agreements with governments or businesses (bonds), or entitlements to ownership through options.