The Following Table Lists the Basket of Goods in the Astro

question 97

Multiple Choice

The following table lists the basket of goods in the Astro Price Index (Assume 2008 is the base year.)
$\begin{array}{|l|c|c|c|c|c|c|} \hline & \begin{array}{c}2008 \\\text { Quantity }\end{array} & \begin{array}{c}2008 \\\text { Price }\end{array} & \begin{array}{c}2009 \\\text { Quantity }\end{array} & \begin{array}{c}2009 \\\text { Price }\end{array} & \begin{array}{c}2010 \\\text { Quantity }\end{array} & \begin{array}{c}2010 \\\text { Price }\end{array} \\\hline \text { Sunglasses } & 8 & \$ 9.00 & 10 & \$ 11.00 & 7 & \$ 10.00 \\\hline \text { Toothpaste } & 15 & 3.00 & 18 & 4.00 & 15 & 4.00 \\\hline \text { Ferrets } & 6 & 12.00 & 4 & 15.00 & 9 & 18.00\\\hline \end{array}$
Table 12.2
-Using the information in Table 12.2, the inflation rate from 2009 to 2010 is about

• A)4 percent.
• B)5 percent.
• C)17 percent.
• D)31 percent.

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Definitions:

Earnings per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of its common stock.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenue.

Common Shares

Equities owned in a corporation, representing a share of the company's profits and a right to vote on certain matters.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.