Table 6-5
This table pertains to an economy with only two goods: books and calculators. The fixed basket consists of 5 books and 10 calculators.
$$\begin{array} { | l | c | c }
\hline \text { Year } & \text { price of Bouks } & \text { price of Calculators } \
\hline 2011 & \$ 24 & \$ 8 \
\hline 2012 & \$ 30 & \$ 12 \
\hline 2013 & \$ 32 & \$ 15 \
\hline
\end{array}$$
-Refer to the Table 6-5.Using 2012 as the base year,what is the consumer price index in 2011?

Question

Table 6-5
This table pertains to an economy with only two goods: books and calculators. The fixed basket consists of 5 books and 10 calculators.
 $$\begin{array} { | l | c | c } 
\hline \text { Year } & \text { price of Bouks } & \text { price of Calculators } \
\hline 2011 & \$ 24 & \$ 8 \
\hline 2012 & \$ 30 & \$ 12 \
\hline 2013 & \$ 32 & \$ 15 \
\hline
\end{array}$$
-Refer to the Table 6-5.Using 2012 as the base year,what is the consumer price index in 2011?

Quizplus · Accepted Answer

To calculate the consumer price index (CPI) in 2011 using 2012 as the base year, we need to find the cost of the fixed basket of goods in both years.

In 2012, the cost of the fixed basket is: 
(5 books x $30/book) + (10 calculators x $12/calculator) = $300

In 2011, the cost of the fixed basket is: 
(5 books x $24/book) + (10 calculators x $8/calculator) = $220

So, the CPI in 2011 using 2012 as the base year is: 
(Cost of fixed basket in 2011 ÷ Cost of fixed basket in 2012) x 100
= ($220/$300) x 100
= 73.33

Therefore, the closest choice is B) 74.07.

Table 6-5 This Table Pertains to an Economy with Only

Table 6-5
This Table Pertains to an Economy with Only