Table 6-5
This Table Pertains to an Economy with Only

question 58

Multiple Choice

Table 6-5
This table pertains to an economy with only two goods: books and calculators. The fixed basket consists of 5 books and 10 calculators.
$$\begin{array} { | l | c | c } \hline \text { Year } & \text { price of Bouks } & \text { price of Calculators } \\\hline 2011 & \$ 24 & \$ 8 \\\hline 2012 & \$ 30 & \$ 12 \\\hline 2013 & \$ 32 & \$ 15 \\\hline\end{array}$$
-Refer to the Table 6-5.Using 2013 as the base year,what is the consumer price index?

• A)52.66 in 2011, 84.25 in 2012, and 106.50 in 2013
• B)64.52 in 2011, 87.10 in 2012, and 100.00 in 2013
• C)52.66 in 2011, 90.89 in 2012, and 100.00 in 2013
• D)100.00 in 2011, 135.00 in 2012, and 155.00 in 2013

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Definitions:

Market Price

The current value at which an asset or service can be bought or sold in the marketplace.

Financial Leverage

Taking on borrowed money to magnify the possible profits of an investment.

EBIT

Profitability metric that disregards interest and income tax expenses, known as earnings before interest and taxes.

Homemade Leverage

The use of personal borrowing to change the overall amount of financial leverage to which an individual or business is exposed.