The Price Index for a Market Basket of Goods Can

question 201

Multiple Choice

The price index for a market basket of goods can be found by

• A)dividing the value of the market basket by the rate of inflation.
• B)multiplying the base-year cost of the basket by the current-year cost of the basket divided by 100.
• C)dividing the current-year value of the market basket by the base-year value of the basket and multiplying the result by 100.
• D)multiplying the value of the market basket by the rate of inflation.

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Definitions:

Net Income

After accounting for all costs and paying taxes, the remaining revenue that constitutes a company's profit.

Marginal Tax Rates

The rate at which your last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.

Eligible Dividends

Dividends designated by a corporation to be eligible for a reduced tax rate in the hands of individual Canadian shareholders.

Interest Income

Income earned from deposit accounts or investments through the receipt of interest payments.