Suppose There Are Only Two Goods (Good a and Good

question 56

Multiple Choice

Suppose there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If, in the base year, the Price of Good A is $5 and the Price of Good B is $10, and in the next year the Price of Good A is $6 and the Price of Good B is $9, the price index in the second of the two years

• A)is 51.
• B)is 100.
• C)is 101.
• D)is 102.

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Definitions:

Personal Insolvency

A financial condition where an individual is unable to meet their debt obligations as they come due.

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay creditors and distribute any remaining assets to the shareholders.