-In 2010, Consumers in Dexter Consumed Only Books and Pens

question 149

Multiple Choice

$\begin{array}{|l|l|l|l|l|}\hline &2010&&2011\\\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Books } & 10 & \$ 30 & 8 & \$ 50 \\\hline \text { Pens } & 20 & \$ 1 & 15 & \$ 2 \\\hline\end{array}$
-In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the cost of the CPI basket in 2010?

• A) $320
• B) $540
• C) $430
• D) $335

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders’ equity at a specific point in time.

Liabilities

Financial obligations or debts a company owes to external parties or entities.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, financial activities, and investment activities.

Balance Sheet

A financial statement that represents a company's assets, liabilities, and shareholders' equity at a specific point in time.