Suppose There Are Only Two Goods (Good a and Good

question 110

Multiple Choice

Suppose there are only two goods (Good A and Good B) and the average person buys 8 of Good A in a year and 6 of Good B. If, in the base year, the Price of Good A is $8 and the Price of Good B is $6, and in the next year the Price of Good A is $10 and the Price of Good B is $5, the price index in the second of the two years

• A)is 10.
• B)is 100.
• C)is 110.
• D)is 120.

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Definitions:

Purchase Money Security Interest

A security interest that is (1) taken or retained by the seller of collateral to secure all or part of its purchase price or (2) taken by a debtor to acquire rights in or the use of the collateral if the value is so used.

Inventory Collateral

Assets from a company's inventory that are pledged to secure a loan.

Notification

The act of formally or officially informing someone about a fact, condition, or event.

Prior Perfected

A legal status indicating that a security interest or lien has been formally established and has priority over others in the same property.