The Data in the Table Above Shows the Consumption by Item

question 8

Multiple Choice

$\begin{array} { l c c c } \hline \text { Item } & \begin{array} { c } \text { Quantity } \\\mathbf { ( 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 2 ) }\end{array} \\\hline \text { Salt } & 2 & \$ 1.00 & \$ 2.00 \\\text { Bread } & 20 & \$ 2.50 & \$ 3.00 \\\hline\end{array}$
The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011.
-The cost of the CPI market basket in 2011 is

• A)$64.00.
• B)$52.00.
• C)$3.50.
• D)$5.00.
• E)100.

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Definitions:

Specific Tariff

A type of tax levied on imports that is based on a specific amount of money per unit of the good imported, rather than on its value.

World Price

The global market price of a product, influenced by worldwide conditions of supply and demand.

World Price

The worldwide market value of a good or service, shaped by international demand and supply forces.

Tariff

A tariff is a tax imposed by a government on goods and services imported from other countries, used to regulate trade, protect domestic industries, or generate revenue.