If the Basket of Goods and Services Used to Calculate

question 173

Multiple Choice

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

• A) 200.
• B) 225.
• C) 325.
• D) 450.

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Definitions:

Square

A mathematical operation involving multiplying a number by itself, or a polygon with four equal sides and angles.

Square Root

A mathematical function that, for a given number, produces a value which, when multiplied by itself, gives the original number.

Mixed Number

A number composed of an integer and a fraction, representing a value greater than or equal to one.