Table 24-7

question 343

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 rate of inflation was 23.75 percent for 2011."

• A)The price of a hot dog was $2.44 rather than $3.30 in 2010, with other prices in the table remaining fixed.
• B)The price of a hot dog was $4.22 rather than $3.63 in 2011, with other prices in the table remaining fixed..
• C)The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.
• D)The price of a hamburger was $6.60 rather than $5.61 in 2011, with other prices in the table remaining fixed.

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Definitions:

Full Employment

Refers to the condition in an economy where all available labor resources are being used in the most efficient way possible, essentially meaning that there is no cyclical or involuntary unemployment.

Production Curve

The production curve, often referred to as the production possibility frontier, is a graph that shows the maximum number of goods or services that can be produced with a fixed amount of resources.

Iraq War

A conflict that began in 2003 with the invasion of Iraq by a coalition led by the United States, aimed at toppling the government of Saddam Hussein.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced with available resources and technology.