Assume Tuition at Penn State Cost $6,142 (Per Semester) in 2007

question 32

Multiple Choice

Assume tuition at Penn State cost $6,142 (per semester) in 2007 and $7,562 in 2012.If the price index was 207.34 in 2007 and 226 in 2012,then we could say:

• A) tuition has increased more slowly than inflation.
• B) tuition has increased more rapidly than inflation.
• C) tuition has increased at about the same rate as inflation.
• D) tuition is an inferior good.
• E) tuition suffers from menu costs due to inflation.

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operating performance.

Expense Accounts

Accounts used to record the consumption of goods and services, or costs incurred in operating a business.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial statement.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.