Table 20-10 -Refer to Table 20-10

question 4

Multiple Choice

Table 20-10
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Product } & \begin{array} { c } \text { Quantity } \\( \mathbf { 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Price } \\( \mathbf { 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Expenditure } \\( \mathbf { 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Price } \\( \mathbf { 2 0 1 6 ) }\end{array} & \begin{array} { c } \text { Expenditure (on } \\\text { base year } \\\text { quantities) (2016) }\end{array} \\\hline \text { Computers } & 1 & \$ 1,200 & \$ 1,200 & \$ 900 & \$ 900 \\\hline \text { Books } & 10 & 25 & 250 & 30 & 300 \\\hline \text { Burgers } & 50 & 3 & 150 & 4 & 200 \\\hline \text { Total } & & & \$ 1 , \mathbf { 6 0 0 } & & \mathbf { 1 , 4 0 0 } \\\hline\end{array}$$
-Refer to Table 20-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2011 is the base year,then what is the CPI for 2016?

• A)14.3
• B)87.5
• C)114.3
• D)160

---

Definitions:

Bond Indenture

A legal contract outlining the terms and conditions between bond issuers and bondholders, including information such as interest rates and maturity dates.

Debenture Bonds

Financial securities issued by a company that are backed only by the issuer's creditworthiness and general reputation, not by physical assets.

Effective-Interest Method

A method of computing the amortized cost of a bond and of allocating interest expense over its relevant period.

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership to the lessee.