The Price Index Is 270 in One Year and 300

question 159

Multiple Choice

The price index is 270 in one year and 300 in the next.What is the inflation rate?

• A)1.0 percent
• B)9.3 percent
• C)10.0 percent
• D)11.1 percent

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Definitions:

Market-Determined Quantity

The quantity of a good or service established through the interaction of supply and demand in a marketplace.

Coal Mine Pollution

Environmental damage caused by the mining and processing of coal, including air and water pollution.

Marginal Social Benefit

The extra benefit that society receives from consuming an additional unit of a good or service.

Production Process

The sequence of operations or steps taken to produce a good or deliver a service.