Assume That the Market Basket of Goods and Services Purchased

question 5

Multiple Choice

Assume that the market basket of goods and services purchased in 2004 by the average family in the United States costs $14,000 in 2004 prices, whereas the same basket costs $21,000 in 2009 prices. However, the basket of goods and services actually purchased by the average family in 2009 costs $20,000 in 2009 prices, whereas this same basket would have cost $15,000 in 2004 prices. Given these data, a Laspeyres price index of 2009 prices using 2004 as the base year would be:

• A)1.05.
• B)approximately 1.07.
• C)approximately 1.33.
• D)1.50.

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Definitions:

Aerobic Endurance

The ability of the heart and lungs to deliver oxygen to the body's tissues during prolonged physical activity.

Glycolysis

A metabolic pathway that breaks down glucose into pyruvate, releasing energy and forming ATP, commonly occurring in nearly all living cells.

Cardiorespiratory Fitness

The efficiency with which the heart, lungs, and vascular system supply oxygen-rich blood to the muscles during sustained physical activity.

Creatine

A naturally occurring compound in the body that supports energy production, particularly in muscle cells, and is often supplemented for athletic performance.