Table 24-7

question 71

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. Which of the following scenarios is consistent with this statement? "The cost of living increased by 25 percent between 2009 and 2011."

• A)The price of a hot dog was $2.24 rather than $3.00 in 2009, with other prices in the table remaining fixed.
• B)The price of a hot dog was $4.07 rather than $3.63 in 2011, with other prices in the table remaining fixed..
• C)The price of a hamburger was $4.24 rather than $5.00 in 2009, with other prices in the table remaining fixed.
• D)The price of a hamburger was $5.96 rather than $5.61 in 2011, with other prices in the table remaining fixed.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage, indicative of the price of credit in the economy.

Borderless World

The concept of a world where barriers to trade, communication, and movement are minimal or non-existent, promoting global integration.

Kenichi Ohmae

Kenichi Ohmae is a Japanese organizational theorist, consultant, and the author of several books on business strategy renowned for his work on global strategy and the "borderless world."

Capital Flows

Movements of money for the purpose of investment, trade, or business production across international borders.