Table 24-1
the Following Table Pertains to Quicheland, an Economy

question 190

Multiple Choice

Table 24-1
The following table pertains to Quicheland, an economy in which the typical consumer's basket consists of 15 bushels of apples and 7 bushels of almond .
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$$\begin{array} { | l | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of Apples } \\\text { (Dollarsp er bushel) }\end{array} & \begin{array} { c } \text { Price of Almond } \\\text { (Dollars per bushel) }\end{array} \\\hline \text { Year 1 } & 12 & 4 \\\hline \text { Year } 2 & 7 & 11 \\\hline\end{array}$$ ​
-Refer to Table 24-1. If Year 1 is the base year, then the inflation rate in Year 2 was

• A)12.50 percent.
• B)-15.00 percent.
• C)-9.00 percent.
• D)-12.50 percent.

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Definitions:

Moral Hazard

A situation where one party is more likely to take risks because another party bears the consequences of those risks, often arising in insurance and finance contexts.

Government Bailouts

Financial support provided by the government to prevent the failure of a struggling company or industry, often to stabilize the economy and preserve jobs.

Struggling Companies

Firms that are facing financial difficulties or are unable to achieve desired business performance.

Moral Hazard

An instance where an individual or group is inclined to partake in high-risk activities, reassured by the fact that any resultant costs will be absorbed by a different party.