A Consumer Expenditure Survey Reports the Following Information on Consumer

question 119

Multiple Choice

A consumer expenditure survey reports the following information on consumer protein spending: $\begin{array}{c}\quad\quad\quad\quad2005 \quad\quad\quad \quad\quad\quad2006\\\begin{array}{lcccc}&\underline { \text { Price } } &\underline { \text { Quantity } }&\underline { \text { Price } } &\underline { \text { Quantity } } \\\text { Fish } & \$ 5 & 5 & \$ 7 & 7 \\\text { Chicken } & \$ 3 & 10 & \$ 4 & 12 \\\text { Beef } & \$ 6 & 7 & \$ 5 & 10\end{array}\end{array}$
Using 2005 as the base year,by how much does a "cost of protein" index increase between 2005 and 2006?

• A)5.2%
• B)8.6%
• C)13.4%
• D)14.3%

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value as the asset is used.

Capital Equipment Purchases

Capital equipment purchases involve the acquisition of physical assets like machinery, vehicles, or equipment used in the production process or in the administration of a business.

Credit Sales

Sales in which the payment is deferred, allowing the buyer to purchase goods or services on account and pay at a later date.

Current Year

Refers to the present calendar or fiscal year in which a business or entity operates.