In an Imaginary Economy,consumers Buy Only Razors and Cologne

question 32

Multiple Choice

In an imaginary economy,consumers buy only razors and cologne.The fixed basket consists of 6 razors and 4 bottles of cologne.A razor cost $20 in 2009 and $25 in 2010.A bottle of cologne cost $30 in 2009 and $40 in 2010.Using 2009 as the base year,which of the following statements is correct?

• A)For the typical consumer,the number of dollars spent on razors is equal to the number of dollars spent on cologne in each of the two years.
• B)The consumer price index is 310 in 2010.
• C)The rate of inflation is 29.17% in 2010.
• D)None of the above is correct.

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Definitions:

Emergent Strategy

A strategy that evolves over time in an organization, often as a response to unexpected opportunities and challenges, rather than being planned from the start.

Incremental Changes

Small, gradual modifications or adjustments made in a process, system, or policy.

Discarded Strategy

A strategy that has been abandoned or rejected after analysis due to it being infeasible, ineffective, or misaligned with organizational objectives.

Corporate Strategies

The overarching plans and policies a business devises to achieve their goals, sustain competitive advantage, and ensure long-term success.