The Table Below Shows the Price Index for China Starting

question 103

Multiple Choice

The table below shows the price index for China starting in 2000.

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Which of the following statements CORRECTLY describes the behavior of prices in China?

• A) The cost of the CPI basket decreased in 2002.
• B) China experienced a high price level and high inflation.
• C) Inflation reached 73% between the base year and 2001.
• D) The inflation rate between 2005 and 2006 was 14.4 percent.

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Definitions:

Life Tenant

An individual who has the right to use or occupy a property during their lifetime but does not own the property.

Waste

The act of using or expending resources carelessly, extravagantly, or to no purpose.

Fee Simple Absolute

The highest and most complete form of land ownership, granting the owner unlimited rights to the property.

Conditional Estate

An interest in property that is dependent on the occurrence or non-occurrence of a specified condition.