In a Particular Economy, the Price Index Was 270 in 2005

question 50

Multiple Choice

In a particular economy, the price index was 270 in 2005 and 300 in 2006. Which of the following statements is correct?

• A)The economy experienced a rising price level between 2005 and 2006.
• B)The economy experienced a higher inflation rate between 2005 and 2006 than it had experienced between 2004 and 2005.
• C)The inflation rate between 2005 and 2006 was 30 percent.
• D)All of the above are correct.

Understand the broad spectrum of theories related to work motivation.

Describe and differentiate between need theories and process theories of motivation.

Explain the components and implications of Self-Determination Theory.

Identify the needs outlined in Maslow's hierarchy and their correspondence in Alderfer's ERG theory.

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Definitions:

Marginal Cost

The escalation in aggregate cost stemming from the production of one more unit of a good or service.

Business Tax

Taxes imposed on the income or profit of businesses, varies by country and the type of business.

Demand Curve

A graphical representation of the quantity of a good or service demanded by consumers at various prices, typically downward sloping indicating an inverse relationship between price and quantity demanded.

Average Revenue Curve

A graphical representation showing how the average revenue per unit sold changes with changes in the quantity of the product sold.