-The Data in the Table Above Show the Consumption by Families

question 36

Multiple Choice

-The data in the table above show the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2011 is

• A) 94.2.
• B) 124.
• C) 106.2.
• D) 100.
• E) 140.5.

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Definitions:

Free Trade Arrangements

Agreements between countries that reduce or eliminate barriers to trade, such as tariffs and import quotas, to promote economic cooperation.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations, aiming to ensure that trade flows smoothly, predictably, and freely.

NAFTA

The North American Free Trade Agreement; a treaty between the United States, Canada, and Mexico that eliminated most tariffs on trade between them.

European Union

A political and economic union of 27 European countries that have agreed to follow common economic, social, and security policies.