The Consumer Price Index for Macroland Consists of Only Two

question 106

Multiple Choice

The consumer price index for Macroland consists of only two items: books and pizzas.In 2011,the base year,the typical consumer purchased 5 books for $55 each and 20 pizzas for $6 each.In 2012,the typical consumer purchased 10 books for $80 each and 30 pizzas for $7 each.The consumer price index for 2012 in Macroland equals

• A) 100.
• B) 108.
• C) 115.
• D) 137.
• E) 185.

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Definitions:

Rates Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Sample Mean

The average of all observations or data points in a sample.

Measurements

The process or the result of determining the size, length, or amount of something, typically by comparison with a standard unit.

Sample Mean

The average of a set of numerical values, taken from a sample of a larger population.