Table 24-4
The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators.
-Refer to Table 24-4. If 2013 is the base year, then the consumer price index was
A)80.8 in 2012, 100 in 2013, and 107.7 in 2014.
B)80.5 in 2012, 100 in 2013, and 107.3 in 2014.
C)247.5 in 2012, 307.5 in 2013, and 330 in 2014.
D)210 in 2012, 260 in 2013, and 280 in 2014.

Question

Table 24-4
The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators. 
-Refer to Table 24-4. If 2013 is the base year, then the consumer price index was
A)80.8 in 2012, 100 in 2013, and 107.7 in 2014. 
B)80.5 in 2012, 100 in 2013, and 107.3 in 2014. 
C)247.5 in 2012, 307.5 in 2013, and 330 in 2014. 
D)210 in 2012, 260 in 2013, and 280 in 2014.

Quizplus · Accepted Answer

The base year CPI is always 100. The CPI for other years is calculated relative to the base year. The values in option A correctly reflect this calculation.

Table 24-4 The Table Below Pertains to Studious, an Economy in Which