Multiple Choice
In 2013, the reference base period for the CPI for the nation of Wobet, a typical consumer spent $30 on potatoes and $150 on steak. Which of the following is true?
A) We cannot say exactly how many of each good are in the basket.
B) The quantity of the two goods in the basket is the same.
C) The quantity of steak in the basket is larger than the quantity of potatoes.
D) The quantity of potatoes in the basket is larger than the quantity of steak.
E) None of the above answers is correct.
Correct Answer:
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