Suppose the Price Index for 2008 Was 100 and the Price

question 2

Multiple Choice

Suppose the price index for 2008 was 100 and the price index for 2009 was 109.How much did prices change between 2008 and 2009?  

• A) Prices increased by 1 percent. 
• B) Prices increased by 8 percent. 
• C) Prices increased by 9 percent. 
• D) Prices increased by 12 percent.

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Definitions:

Wear Out

The process by which goods and materials deteriorate in quality and functionality over time due to use.

Expected Utility Function

A concept in economics that calculates the anticipated utility or satisfaction a consumer can derive from various options, considering the probabilities of different outcomes.

Sure Payment

A guaranteed financial transaction where the payer is certain to provide the agreed-upon sum to the payee.

Lottery

A form of gambling that involves the drawing of numbers at random for a prize, often analyzed for its economic impact and decision-making under uncertainty.