You decide you want to compare your average price level for what you spend on entertainment.Last year, which you decide will be the base year, your spent $50 for a concert, $15 per movie, and $25 for a dinner out.This year, these same activities cost $75, $20, and $40, respectively.Calculate your entertainment index in the base year.
A)1
B)100
C)1.5
D)150

Question

Quizplus · Accepted Answer

The entertainment index in the base year is always 100 because it serves as the reference point for comparing price levels in other years.

You Decide You Want to Compare Your Average Price Level