Suppose an Economy Has Only Three Goods,and the Typical Family

question 96

Multiple Choice

Suppose an economy has only three goods,and the typical family purchases the amounts given in the following table.If 2012 is the base year,then what is the CPI for 2017? $$\begin{array} { | c | c | c | c | c | c | } \hline \text { Product } & \begin{array} { c } \text { Quantity } \\\text { (2012) }\end{array} & \begin{array} { c } \text { Price } \\\text { (2012) }\end{array} & \begin{array} { c } \text { Expenditures } \\\mathbf { ( 2 0 1 2 ) }\end{array} & \begin{array} { c } \text { Price } \\\text { (2017) }\end{array} & \begin{array} { c } \text { Expenditures (on base } \\\text { year quantities) (2017) }\end{array} \\\hline \text { Computers } & 1 & \$ 1500 & \$ 1500 & \$ 1200 & \$ 1200 \\\hline \text { Books } & 10 & \$ 25 & \$ 250 & \$ 30 & \$ 300 \\\hline \text { Burgers } & 50 & \$ 1.00 & \$ 50 & \$ 2.00 & \$ 100 \\\hline \text { Total } & & & \$ 1800 & & \$ 1600 \\\hline\end{array}$$

• A) 89
• B) 125
• C) 212
• D) 163

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Definitions:

Facebook

A social networking site that allows users to create profiles, share photos and videos, send messages, and keep in touch with friends, family and colleagues.

WAN

Wide Area Network, a telecommunications network that extends over a large geographical area for the primary purpose of computer networking.

LAN

Local Area Network, a computer network that interconnects computers within a limited area such as a home, school, or office building.

MAN

Metropolitan Area Network, a network that connects users with computer resources in a geographic area or region larger than that covered by even a large local area network (LAN) but smaller than the area covered by a wide area network (WAN).