Consider the Following Data That Gives the Quantity Produced and Unit

question 75

Multiple Choice

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.

-What was the inflation rate between the two years?

• A) 1%
• B) 3.2%
• C) 2%
• D) 3.8%
• E) 8.3%

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Definitions:

Corporation

A legal entity that is separate from its owners, providing them with limited liability, and has the ability to own assets, incur liabilities, and sell shares.

Interest Rate

The percentage charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.

Normal Return

The minimum profit necessary to keep a company in business, regarded as the cost of capital in the long run.

Investment

The allocation of resources, usually money, in order to earn a future return or profit.