Which of the Following Is the Correct Formula for Calculating

question 13

Multiple Choice

Which of the following is the correct formula for calculating the consumer price index?

• A)[(CPI in Year 1 − CPI in Year 2)/CPI in Year 2] × 100
• B)[(price of basket of goods and services in current year/price of basket in base year)]× 100
• C)[(price of basket of goods and services in current year − price of basket in base year)/price of basket in base year] × 100
• D)[(price of basket of goods and services in base year/price of basket in current year)] × 100

---

Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

McWorld

A concept introduced by Benjamin Barber to describe the globalizing, homogenizing force of capitalism and consumer culture.

Benjamin Barber

A political theorist known for his work on democracy and civil society, particularly his critique of global capitalism and argument for more participatory forms of democracy.

Anthony Giddens

A British sociologist known for his theory of structuration and his holistic view of modern societies.