-Consumers in a Country Buy Only Two Goods,pens and CDs

question 154

Multiple Choice

-Consumers in a country buy only two goods,pens and CDs.The prices and quantities purchased by urban households are in the table above.If 2011 is the reference base year,the cost of the CPI market basket in the base year is

• A)$3,400.
• B)$3,408.
• C)$3,580.
• D)$3,508.
• E)$3,500.

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Definitions:

Entertainment Budget

An estimate of the money allocated for leisure and entertainment activities within a certain period.

Electronic Matrix

A spreadsheet.

Spreadsheet

An electronic worksheet where data is entered into cells that can contain numbers, words, or formulas.

Variable Expenses

Expenses that depend on the number of items produced, such as raw materials.