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Assume That the Consumer Price Index for 2009 Was 72

question 4

Multiple Choice

Assume that the consumer price index for 2009 was 72.6 and for 2010 was 82.4. What was the inflation rate between the two years?


Definitions:

Variable Inputs

Resources or factors of production that can be adjusted in the short run to meet changes in demand.

Diminishing Returns

An economic concept indicating that as more investment is made in a particular area, the rate of profit from that investment, after a certain point, starts to decline.

Marginal Product

The additional output produced by using one more unit of a particular input, while holding other inputs constant.

Marginal Product

The increase in output that results from employing one additional unit of a factor of production, while holding other factors constant.

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