Suppose That 1982 Is the Base Year for the Consumer

question 24

Multiple Choice

Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2007 the CPI was 190.What does this "190" mean?

• A) What cost $100 in 1982 on average cost 190 times as much in 2007.
• B) What cost $100 in 1982 on average cost $190 in 2007.
• C) What cost $100 in 1982 on average cost 0.19 times as much in 2007 (that is, it cost $19 in 2007).
• D) What cost $100 in 1982 on average cost $19 more in 2007.

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Definitions:

Candy Bar

A confectionery item that typically combines chocolate with other ingredients like nuts, caramel, or nougat.

Opportunity Cost

The cost of what you have to give up in order to choose something else; the value of the next best alternative forgone.

State Government

The organization through which a specific geographical region within a country is governed, having its specific executive, legislative, and judicial powers.

Education Programs

Structured sequences of instruction or training designed to achieve specific learning outcomes or skills.