Table 11-2
the Table Below Pertains to Iowan, an Economy

question 386

Multiple Choice

Table 11-2
The table below pertains to Iowan, an economy in which the typical consumer's basket consists of 3 pounds of pork and 4 bushels of corn. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of } \\\text { pork }\end{array} & \begin{array} { c } \text { Price of } \\\text { Corn }\end{array} \\\hline 2008 & \$ 20 \text { per pound } & \$ 12 \text { per bushed } \\\hline 2009 & \$ 25 \text { per pound } & \$ 18 \text { per bushed } \\\hline\end{array}$$
-Refer to Table 11-2. If 2008 is the base year, then the inflation rate in 2009 was

• A)26.5 percent.
• B)36.1 percent.
• C)39 percent.
• D)47 percent.

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Definitions:

Dividends

These are distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Shareholders

Individuals or entities that own shares in a corporation, thus having an interest in its performance and profitability.

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.