Use the Following to Answer Questions

question 345

Multiple Choice

Use the following to answer questions:
Scenario: Price Index
Suppose that in the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie tickets for $7 each. In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.
-(Scenario: Price Index) Look at the scenario Price Index. The price index for the second month is:

• A)94.
• B)106.4.
• C)100.
• D)101.1.

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Definitions:

Code

A system of principles or rules designed to regulate behavior or conduct in a specific area.

Explicit Agreement

A clear and specific understanding or arrangement defined by express terms, typically in writing or spoken words.

Option To Return

A contractual right allowing one party to return a product, asset, or property to the other party under specified conditions.

Risk

The exposure to danger, harm, or loss, whether physical, financial, or emotional, arising from uncertain or unforeseeable events.