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

question 31

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.
-Refer to the Table 6-5.Using 2015 as the base year,what is the inflation rate?

• A) 13.3 percent for 2014 and 14.8 percent for 2015
• B) 13.3 percent for 2014 and 55.0 percent for 2015
• C) 35.0 percent for 2014 and 14.8 percent for 2015
• D) 35.0 percent for 2014 and 55.0 percent for 2015

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Definitions:

Spending Variance

The discrepancy between the budgeted or planned amount of expense and the actual amount spent, often analyzed to understand financial performance.

Materials

The raw goods and components used in the manufacturing or production process to create final products.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a specific period.

Medical Supplies

Items and equipment used in medical care, often consumable, disposable, or for patient management and diagnosis.