$\begin{array} { l c c l }
\hline { \text { Item } } & \begin{array} { c }
\text { Quantity } \
( \mathbf { 2 0 0 0 ) }
\end{array} & \begin{array} { c }
\text { Price } \
\mathbf { ( 2 0 0 0 ) }
\end{array} & \begin{array} { c }
\text { Price } \
\mathbf { ( 2 0 1 0 ) }
\end{array} \
\hline \text { Movie tickets } & 4 & \$ 5.00 & \$ 7.50 \
\text { Bags of popcorn } & 2 & \$ 3.00 & \$ 3.00 \
\text { Cups of Mt. Dew } & 4 & \$ 1.00 & \$ 1.50 \
\hline
\end{array}$
The information in the above table gives the 2000 base period market basket and prices used to construct the CPI for a small nation. The table also has 2010 prices.
- What is the value of the CPI for the base period 2000?

Question

$\begin{array} { l c c l } 
\hline { \text { Item } } & \begin{array} { c } 
\text { Quantity } \
( \mathbf { 2 0 0 0 ) }
\end{array} & \begin{array} { c } 
\text { Price } \
\mathbf { ( 2 0 0 0 ) }
\end{array} & \begin{array} { c } 
\text { Price } \
\mathbf { ( 2 0 1 0 ) }
\end{array} \
\hline \text { Movie tickets } & 4 & \$ 5.00 & \$ 7.50 \
\text { Bags of popcorn } & 2 & \$ 3.00 & \$ 3.00 \
\text { Cups of Mt. Dew } & 4 & \$ 1.00 & \$ 1.50 \
\hline
\end{array}$
The information in the above table gives the 2000 base period market basket and prices used to construct the CPI for a small nation. The table also has 2010 prices.
- What is the value of the CPI for the base period 2000?

Quizplus · Accepted Answer

The CPI for the base period is always 100, as it serves as the reference point for measuring inflation or deflation in subsequent years.

The Information in the Above Table Gives the 2000 Base