Table 9-11 -Refer to Table 9-11.Suppose an Economy Has Only Three Goods

question 175

Multiple Choice

Table 9-11

-Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2005 is the base year,then what is the CPI for 2013?

• A)40.08
• B)100
• C)180
• D)208

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Definitions:

Positive Economic Statement

An objective statement that can be tested or validated and is based on factual information.

Budget Line

A diagram that represents all possible pairs of two commodities that can be acquired with a given budget and product prices.

Incomes

The money received by individuals or groups for work, from investments, or from transfers like pensions or gifts.

Land Resources

Natural resources encompassing the various features and benefits of land, including soil, minerals, flora, and ecological support.