Table 20-11

-Refer to Table 20-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2013 is the base year, then what is the CPI for 2018?
A) 40.08
B) 100
C) 180
D) 208

Question

Table 20-11
 
-Refer to Table 20-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2013 is the base year, then what is the CPI for 2018?
A) 40.08 
B) 100 
C) 180 
D) 208

Quizplus · Accepted Answer

The CPI for 2018 is calculated by taking the cost of the basket of goods in 2018, dividing it by the cost of the basket in the base year (2013), and then multiplying by 100. If the cost in 2018 is more than double the cost in 2013, the CPI will be over 200, making 208 the correct choice.

Table 20-11 -Refer to Table 20-11. Suppose an Economy Has Only Three