Let Us Reconsider the Case of Ronald in Problem 4

question 2

Multiple Choice

Let us reconsider the case of Ronald in Problem 4. Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ = 15. If in the current year, the price of good 1 is $1 and the price of good 2 is $2, and his current consumptions of good 1 and good 2 are 25 and 20 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

• A) 1.17
• B) 2.17
• C) 0.75
• D) 0.50
• E) 1.75

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Definitions:

Power Distance

Power Distance is a cultural dimension that expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally.

Authentic Leadership

A leadership style that emphasizes genuineness, transparency, and ethical behavior, encouraging leaders to be themselves.

GLOBE Model

A research framework for understanding the relationship between culture and societal, organizational, and leadership effectiveness across the world.

Uncertainty Avoidance

A cultural dimension that describes societies' tolerance for ambiguity and uncertainty, influencing their rules, regulations, and stability.