To See Whether the Price of Gasoline Has Risen Compared

question 27

Multiple Choice

To see whether the price of gasoline has risen compared to the prices of other goods and services, one would calculate

• A)gasoline spending divided by spending on all other goods and services.
• B)gasoline spending divided by total consumer spending.
• C)the trend in the price of gasoline.
• D)the price of gasoline divided by the overall price level.
• E)the price of gasoline divided by the rate of inflation.

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Definitions:

Equity

The amount of money that would be returned to shareholders if all of the assets were liquidated and all the company's debts were paid off.

Capital Stock

The total amount of shares that a company can issue as authorized by its corporate charter, representing ownership in the company.

Redeemed Stock

Shares that have been bought back or repaid by the issuing company.