If the Current Price of a Market Basket of Goods

question 20

Multiple Choice

If the current price of a market basket of goods is $850 and the base year price for the same basket is $500,what is the value of the price index?

• A)140
• B)170
• C)120
• D)100

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Definitions:

Assessed Valuation

The dollar value assigned to a property for purposes of measuring applicable taxes, determined by a public tax assessor.

Taxation

The imposition of compulsory levies on individuals or entities by governments to fund public expenditures.

Market Value

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction.

Sales Tax

A tax imposed by government authorities on the sale of goods and services, paid for by the consumer at the point of purchase.