-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 2010?

Question

Quizplus · Accepted Answer

The CPI is calculated by dividing the cost of the market basket in the current year by the cost of the market basket in the base year and multiplying by 100. In this case, the cost of the market basket in 2000 was $100, and the cost of the market basket in 2010 was $140. Therefore, the CPI for 2010 is 140/100 * 100 = 140.

-The Information in the Above Table Gives the 2000 Base