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

question 273

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 2009 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:

Quarterly

Pertaining to a period of three months or a quarter of a year, often used in finance to denote regular intervals for reporting or payment.

Accumulated Depreciation

The total amount of depreciation expense that has been reported in accounting periods up to the current date for an asset, reducing its book value.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or age.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.