Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.

-Refer to Table 21.3.1.The reference base period is 2002.The CPI in 2012 is
A)1,340.
B)158.
C)100.
D)96.
E)63.

Question

Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.
 
-Refer to Table 21.3.1.The reference base period is 2002.The CPI in 2012 is
A)1,340. 
B)158. 
C)100. 
D)96. 
E)63.

Quizplus · Accepted Answer

To calculate the CPI for 2012, we need to divide the price index for 2012 by the price index for the base year and multiply by 100. The price index for 2012 is 2,000/1,265 x 100 = 158. Therefore, the best choice is B, with a CPI of 158 in 2012.

Use the Table Below to Answer the Following Questions