If the Price Index in 2015 Is 132 and the Price

question 8

Multiple Choice

If the price index in 2015 is 132 and the price index in 2016 is 114, the rate of inflation between 2015 and 2016 is

• A) -13.6%.
• B) -5.8%.
• C) 6.4%.
• D) 15.8%.

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Definitions:

Comparative Advantage

is the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

Specialization And Trade

The economic practice where individuals or countries focus on producing specific goods or services and trade them for others, enhancing efficiency and productivity.

Production Possibilities

A model that shows the various combinations of outputs that a economy can produce, given its resources and technology.

Land-Intensive

Describes production processes or industries that require large amounts of land to produce goods or services.