For Any Given Year, the CPI Is the Price of the Basket

question 206

Multiple Choice

For any given year, the CPI is the price of the basket of goods and services in the

• A)given year divided by the price of the basket in the base year, then multiplied by 100.
• B)given year divided by the price of the basket in the previous year, then multiplied by 100.
• C)base year divided by the price of the basket in the given year, then multiplied by 100.
• D)previous year divided by the price of the basket in the given year, then multiplied by 100.

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Definitions:

Raw Material

Basic materials that are used in the production of goods, finished products, or intermediate materials that are feedstock for future finished products.

Statistics

The science of collecting, analyzing, interpreting, and presenting data.

Data

The facts and figures collected, analyzed, and summarized for presentation and interpretation.

Nominal Scale

A measurement scale used for categorization without a natural order or rank.