Table 11-6 -Refer to Table 11-6

question 261

Multiple Choice

Table 11-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. $$\begin{array} { l c c } \hline \text { Year } & \text { Priee of hamburegers } & \text { Prife of hat doges } \\\hline 2009 & \$ 5.00 & \$ 3.00 \\2010 & 5.50 & 3.30 \\2011 & 5.61 & 3.63 \\\hline\end{array}$$
-Refer to Table 11-6. Which of the following scenarios is consistent with this statement? "The rate of inflation was 23.75 percent for 2011."

• A)The price of a hot dog was $2.44 rather than $3.30 in 2010, with other prices in the table remaining fixed.
• B)The price of a hot dog was $4.22 rather than $3.63 in 2011, with other prices in the table remaining fixed..
• C)The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.
• D)The price of a hamburger was $6.60 rather than $5.61 in 2011, with other prices in the table remaining fixed.

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Definitions:

Costs More

Refers to an increase in financial expenditure or the necessity to spend more money on a specific item or service.

Indifference Schedule

A tabular representation showing combinations of goods between which a consumer is indifferent, reflecting similar preferences as an indifference map.

Units of X

A quantifiable amount of a product or resource, denoted as 'X', used in various contexts to measure output, consumption, or other economic variables.

Marginal Rate

refers to the rate at which one variable changes as another variable changes slightly, commonly used in the context of taxes or interest.