-The data in the table above show the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2012 is

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for a given year is calculated by taking the current year's market basket cost, dividing it by the base year's market basket cost, and then multiplying by 100. For 2012, the calculation is as follows: [(($0.20 * 20) + ($2.00 * 10)) / (($0.10 * 20) + ($1.00 * 10))] * 100 = [($4 + $20) / ($2 + $10)] * 100 = [$24 / $12] * 100 = 2 * 100 = 200. However, since the correct answer is not listed, it seems there might have been a misunderstanding in the question's presentation or a mistake in the calculation interpretation based on the provided options. The correct approach involves calculating the CPI using the given data, which typically involves comparing the cost of a standard basket of goods at different times.

-The Data in the Table Above Show the Consumption by Families