Table 24-8
The table below relates to the economy of Mainland, where the typical consumer's market basket consists of 2 televisions and 300 hamburgers.
-Refer to Table 24-8. If the base year is 2014, then the consumer price index was
A)80 in 2013, 100 in 2014, and 60 in 2015.
B)98 in 2013, 100 in 2014, and 96 in 2015.
C)90 in 2013, 100 in 2014, and 80 in 2015.
D)180 in 2013, 200 in 2014, and 160 in 2015.

Question

Table 24-8
The table below relates to the economy of Mainland, where the typical consumer's market basket consists of 2 televisions and 300 hamburgers. 
-Refer to Table 24-8. If the base year is 2014, then the consumer price index was
A)80 in 2013, 100 in 2014, and 60 in 2015. 
B)98 in 2013, 100 in 2014, and 96 in 2015. 
C)90 in 2013, 100 in 2014, and 80 in 2015. 
D)180 in 2013, 200 in 2014, and 160 in 2015.

Quizplus · Accepted Answer

The base year CPI is always 100. The CPI for other years is calculated relative to the base year. If the CPI decreases from 2014 to 2015, it should be less than 100, which matches option C.

Table 24-8 The Table Below Relates to the Economy of Mainland, Where