The Reference Base Period Is 2002

question 55

Multiple Choice

The reference base period is 2002. A consumer price index of 122 in 2014 means that

• A)prices of consumer goods have gone up by a factor of 12.2.
• B)if the price of a good was $100 in 2002, its price in 2014 is $122.
• C)prices of consumer goods have more than doubled.
• D)the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2014.
• E)the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2014 than it was on average during 2002.

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Definitions:

Beers

Alcoholic beverages made from grain, water, hops, and yeast, typically fermented and varying widely in flavor, strength, and type.

Oysters

Marine mollusks that live in marine or brackish habitats, known for their edible, calcium-rich shells and being a delicacy in many parts of the world.

Indeterminate

Indeterminate is a term used to describe a situation or outcome that is not clearly defined or decided, leading to uncertainty.

Total Utility

The total satisfaction received from consuming a particular quantity of goods or services.