If Inflation Is Viewed as a "Sustained Increase in the General

question 132

Multiple Choice

If inflation is viewed as a "sustained increase in the general level of prices," an increase in the price of a specific market basket of goods from $34.50 six months ago $35.71 today would suggest that the annual rate of inflation is:

• A)3.4%.
• B)$1.21.
• C)3.5%.
• D)7.0%.

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Definitions:

Restraint On Trade

Legal concept that refers to practices that limit free trading and competition between businesses.

Illegal

Activities or actions that are prohibited by law or statute and subject to penalties or sanctions.

Oligopolistic

Pertaining to a market structure characterized by a small number of firms controlling a large portion of the market share.

Market Structure

The organizational and other characteristics of a market that influence the nature of competition and pricing, such as the number of firms, product uniformity, and ease of entry.