Assume That the Market Basket of Goods and Services Purchased

question 52

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 Paasche index for 2009 using 2004 prices would be:

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

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Definitions:

Prenatal Development

The progression from fertilization to delivery involving the increase and maturation within the uterus.

Umbilical Cord

A tube-like structure that connects an unborn baby to the placenta, providing oxygen and nutrients while removing waste products.

Diethylstilbestrol

A synthetic estrogen previously prescribed to prevent miscarriages and pregnancy complications, later found to cause health issues.

Teratogens

Agents that can cause congenital abnormalities or increase the incidence of an anomaly in a fetus when a mother is exposed during pregnancy.