Table 24-4 The Table Below Pertains to Studious, an Economy in Which

question 342

Multiple Choice

Table 24-4
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 24-4. If 2012 is the base year, then the consumer price index was

• A)100 in 2012, 123.8 in 2013, and 133.3 in 2014.
• B)100 in 2012, 124.2 in 2013, and 133.3 in 2014.
• C)210 in 2012, 260 in 2013, and 280 in 2014.
• D)100 in 2012, 150 in 2013, and 170 in 2014.

---

Definitions:

Demand for Insurance

The desire or willingness of individuals or entities to pay for protection against financial losses or potential risks.

Mutual Gains

Benefits or advantages that are shared among parties in a transaction or negotiation, leading to a situation where all involved parties end up better off.

Insurance Industry

A sector of the financial services market that provides risk management through contractually agreed-upon financial protection against losses.

Capital at Risk

The amount of capital that could be lost in an investment due to risk factors.