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:

Amortization of Discount

The gradual reduction of a bond discount over the life of the bond, effectively increasing the bond's book value to its face value at maturity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Bonds Payable

Long-term liabilities represented by bonds that a company must repay to investors at a specified maturity date.