Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.

-Refer to Table 21.3.1.The reference base period is 2008.The CPI in 2002 is
A)100.
B)157.
C)129.
D)63.
E)152.

Question

Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.
 
-Refer to Table 21.3.1.The reference base period is 2008.The CPI in 2002 is
A)100. 
B)157. 
C)129. 
D)63. 
E)152.

Quizplus · Accepted Answer

The CPI (Consumer Price Index) is calculated relative to a base year. If the reference base period is 2008, then the CPI for any year before 2008 would be less than 100, as prices generally increase over time. Therefore, the only option less than 100 is 63.

Use the Table Below to Answer the Following Questions