Suppose a Basket of Goods and Services Has Been Selected

question 67

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been selected as the base year. In 2002, the basket's cost was $50; in 2004, the basket's cost was $52; and in 2006, the basket's cost was $54.60. The value of the CPI in 2004 was

• A)96.2.
• B)102.0.
• C)104.0.
• D)152.0.

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Definitions:

Perishable Goods

Items that have a limited shelf life and require timely sale or consumption before they deteriorate, such as food products and flowers.

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial cycle.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Equity

The value of an owner's interest in a property or business, after all debts and other liabilities have been deducted.