Table 16-6

question 313

Multiple Choice

Table 16-6.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.

-Refer to Table 16-6.If the base year is 2009,then the consumer price index is

• A) 100 in 2009,109 in 2010,and 115 in 2011.
• B) 100 in 2009,110 in 2010,and 117 in 2011.
• C) 110 in 2009,121 in 2010,and 128.26 in 2011.
• D) 44 in 2009,48.4 in 2010,and 51.48 in 2011.

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Definitions:

Soil Fertility

The ability of soil to provide essential nutrients to plants in adequate amounts for growth.

Overgrazing

The degradation of a grazing land, resulting from livestock grazing at a rate higher than the capacity of the land to regenerate.

Production Possibilities Curve

A graph that shows the combinations of two goods that can be produced using all available resources and technology efficiently.

International Specialization

The economic strategy where countries focus on the production and export of goods and services that they can produce most efficiently.