Suppose a Basket of Goods and Services Has Been Selected

question 92

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the consumer price index.In 2005,the basket of goods cost $108.00;in 2006,it cost $135.00;and in 2007,it cost $168.75.Which of the following statements is correct?

• A)Using 2005 as the base year,the economy's inflation rate was higher in 2007 than it was in 2006.
• B)If 2007 is the base year,then the CPI is 33.75 in 2006.
• C)If the CPI is 156.25 in 2007,then 2005 is the base year.
• D)Using 2005 as the base year,the economy's inflation rate for 2006 was 27 percent.

---

Definitions:

Endothermy

The physiological capability of an organism to maintain a constant body temperature through metabolic activity, regardless of external temperatures.

Mammary Glands

Exocrine glands that secrete milk for the young; a derived character of mammals.

Descendants

Individuals or organisms that come from a specific ancestor, representing the future generations in a lineage.

Dinosaurs

Extinct reptiles known for their varied sizes and shapes that lived on Earth during the Mesozoic Era.