If P_t is the Price of Good X in Period

question 72

Multiple Choice

If p_t is the price of good X in period t, and p₀ is the base period price, which of the following is the equation for a simple price index for good X?

• A) × 100
• B) × 100.
• C) × 100.
• D) p_t - p₀ × 100.

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Definitions:

Equity Method

An accounting technique used by a parent company to record its investments in subsidiaries or affiliates based on the equity stake's pro-rata share of net assets rather than the historical cost of the investment.

Stockholders' Equity

The remaining value of a company's assets after liabilities are subtracted, indicating the stake held by shareholders.

Liabilities

Financial obligations or debts that an entity owes to external parties, which must be settled through the transfer of assets, provision of services, or other economic benefits.

Assets

Resources owned or controlled by a business, expected to produce economic value or future benefits.