-Refer to Table 6-1. Suppose that the typical consumer basket consists of 5 bushels of peaches and 10 bushels of apples and that the base year is 2018. What is the consumer price index for 2018?
A) 80
B) 100
C) 120
D) 125

Question

-Refer to Table 6-1. Suppose that the typical consumer basket consists of 5 bushels of peaches and 10 bushels of apples and that the base year is 2018. What is the consumer price index for 2018?
A) 80 
B) 100 
C) 120 
D) 125

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for the base year is always 100. This is because the CPI in the base year is calculated by dividing the cost of the market basket in the base year by the cost of the same basket in the base year and then multiplying by 100. Since the numerator and denominator are the same in the base year, the CPI is 100.