Table 6-12

question 236

Multiple Choice

Table 6-12. Will's expenditures on food for three consecutive years, along with other values, are presented in the table below.

-Refer to Table 6-12. Suppose Will's 2009 food expenditures in 2011 dollars amount to $5,750. Then the inflation rate for 2011 is about

• A) 9.08 percent.
• B) 9.52 percent.
• C) 10.24 percent.
• D) 10.78 percent.

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Definitions:

Total Costs

The complete amount of money spent by a business for producing or acquiring goods or services, including both fixed and variable costs.

Economic Profits

Economic profits are the financial gains that exceed the total costs of production, including both explicit and opportunity costs, indicating an above-normal return.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be changed.