Table 24-7

question 346

Multiple Choice

Table 24-7. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs.
-Refer to Table 24-7. If the base year is 2009, then the consumer price index is

• A)100 in 2009, 109 in 2010, and 115 in 2011.
• B)100 in 2009, 110 in 2010, and 117 in 2011.
• C)110 in 2009, 121 in 2010, and 128.26 in 2011.
• D)44 in 2009, 48.4 in 2010, and 51.48 in 2011.

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Definitions:

Capital Investments

Expenditures by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Mortgage Exemption

A provision in tax law or regulation that allows certain mortgage payments, interest, or property taxes to be excluded from taxable income.

Home Mortgage

A loan provided by a lender or financial institution to purchase a house, where the property itself is used as collateral.

Wealth Taxes

Taxes levied on the total value of personal assets, including real estate, bank deposits, shares, and other forms of property.