If the Purchasing Power of a Dollar Measured in Terms

question 45

Multiple Choice

If the purchasing power of a dollar measured in terms of the base year was $0.41, what was the price index?

• A) 238
• B) 244
• C) 41
• D) 42
• E) 100

---

Definitions:

Bowling Pin Strategy

A business approach where success with one target market or product leads to subsequent success with additional markets or products, akin to knocking down a series of pins.

Beachhead Strategy

A strategy in which a company focuses efforts and resources on capturing and dominating a small market segment before expanding to larger markets.

Launch Market

Refers to the specific market or audience a company targets when releasing a new product or service.

Bottom-Up Analysis

A strategy used in analysis that starts with specific details and moves towards the bigger picture, often used in financial planning and investment strategy.