USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 14

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 4.1. Compute an unweighted price indicator series, using geometric means. What is the percentage change in the index from Day T to Day T+1? Assume a base index value of 100 on Day T.

• A) 5.35 percent
• B) 7.48 percent
• C) 9.93 percent
• D) 6.33 percent
• E) 0 percent

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Definitions:

Nonlabor Resources

are inputs in the production process that are not related to work or effort by employees, such as capital, land, and materials.

Diminishing

Refers to the principle where increasing one input, while holding others constant, will eventually yield lower per-unit returns.

Long Run

In economics, a period in which all factors of production and costs are variable, and firms can enter or exit the market.

Resources Fixed

A situation in an economic model where the availability of resources is constant and unchanging over time.