-The information in the table above gives the 2016 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2017 prices. What is the value of the CPI for 2017?
A) 140
B) 133
C) 100
D) 75

Question

-The information in the table above gives the 2016 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2017 prices. What is the value of the CPI for 2017?
A) 140 
B) 133 
C) 100 
D) 75

Quizplus · Accepted Answer

The CPI is calculated by dividing the cost of the basket of goods in the current year by the cost of the same basket of goods in the base year and multiplying by 100. In this case, the cost of the basket of goods in 2016 was 100, and the cost of the same basket of goods in 2017 was 140. Therefore, the CPI for 2017 is 140 / 100 * 100 = 140.

-The Information in the Table Above Gives the 2016 Reference