Table 6-3 The Table Below Pertains to Studious, an Economy in Which

question 205

Multiple Choice

Table 6-3
The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators.

-Refer to Table 6-3. If 2007 is the base year, then the consumer price index was

• A) 74.1 in 2006, 100 in 2007, and 114.8 in 2008.
• B) 74.1 in 2006, 270 in 2007, and 310 in 2008.
• C) 200 in 2006, 100 in 2007, and 114.8 in 2008.
• D) 200 in 2006, 270 in 2007, and 310 in 2008.

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Definitions:

Competitive Advantage

The facet of a business that it does better than all of its competitors.

Escalation Lease

A lease agreement that includes provisions for rent increases over the lease term.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

A Lease

A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset in exchange for payment over a specified period.