The Consumer Price Index for Planet Econ Consists of Only

question 26

Multiple Choice

The consumer price index for Planet Econ consists of only two items: books and hamburgers.In 2011,the base year,the typical consumer purchased 10 books for $25 each and 25 hamburgers for $2 each.In 2012,the typical consumer purchased 15 books for $30 each and 30 hamburgers for $3 each.The consumer price index for 2012 on Planet Econ equals

• A) 100.
• B) 108.
• C) 115.
• D) 125.
• E) 180.

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Definitions:

Adjusted

refers to altering or changing something to accommodate or match a certain condition or circumstance.

Allocation

The process of assigning or distributing resources, costs, or expenses to various accounts or periods.

Deduct

Deduct refers to the act of subtracting an amount from a total, often used in financial contexts such as subtracting expenses or costs from income to calculate taxable income.

AGI

AGI, short for Adjusted Gross Income, is an individual's total gross income minus specific deductions, used to determine how much of one's income is taxable.