Table 11-5
the Table Below Pertains to Napandsnack, an Economy

question 219

Multiple Choice

Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of a } \\\text { pilldw }\end{array} & \begin{array} { c } \text { Price af a } \\\text { Hotdlog }\end{array} \\\hline 2009 & \$ 40 & \$ 3 \\\hline 2010 & \$ 45 & \$ 4 \\\hline 2011 & \$ 50 & \$ 3 \\\hline\end{array}$$
-Refer to Table 11-5. If the base year is 2009, then the economy's inflation rate in 2010 is

• A)20 percent.
• B)25 percent.
• C)30 percent.
• D)120 percent.

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Definitions:

Production Bottleneck

A point in the manufacturing process where the demand for a company’s product exceeds the ability to produce the product. Also referred to as a constraint.

Markup Percentage

The percentage added to the cost of a product to determine its selling price.

Invested Assets

Assets held by an entity for earning income, gaining profits, or other benefits, including stocks, bonds, and real estate.

Unit Selling Price

The cost that a customer pays per unit of product purchased.