Table 6-5 This Table Pertains to an Economy with Only Two Goods

question 48

Multiple Choice

Table 6-5
This table pertains to an economy with only two goods: books and calculators.The fixed basket consists of 5 books and 10 calculators.
-Refer to the Table 6-5.Using 2014 as the base year,what is the consumer price index in 2015?

• A) 74.07
• B) 77.78
• C) 78.22
• D) 135.00

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Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Company

A business entity established by a collection of people to conduct and manage a commercial venture.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Total Dividend

The total amount of dividend that a company decides to pay out to its shareholders from its net income.