Year Price of Pork Price of Corn 2012 $20 per pound $12 per bushel 2013 $25 per
ID: 1227224 • Letter: Y
Question
Year
Price of Pork
Price of Corn
2012
$20 per pound
$12 per bushel
2013
$25 per pound
$18 per bushel
1. Refer to the table above. The typical consumer’s basket consists of 4 pounds of pork and 3 bushels of corn. The cost of the basket in 2012 was
Select one:
a. $108
b. $116.
c. $112.
d. $224.
2. Refer to table above. The cost of the basket in 2013 was
Select one:
a. $150.50.
b. $147.
c. $154.
d. $301.
3. Refer to the table above. If 2012 is the base year, then the CPI for 2012 was
Select one:
a. 75.3
b. 100
c. 116
d. 132.8
4. Refer to the table above. If 2012 is the base year, then the CPI for 2013 was
Select one:
a. 100
b. 116
c. 132.8
d. 154
5. Refer to the table above. If 2013 is the base year, then the CPI for 2012 was
Select one:
a. 75.3
b. 100
c. 116
d. 132.8
6. Refer to the table above. If 2013 is the base year, then the CPI for 2013 was
Select one:
a. 75.3
b. 100
c. 116
d. 132.8
7. Refer to the table above. If 2012 is the base year, then the inflation rate in 2013 was
Select one:
a. 24.7 percent.
b. 54.0 percent.
c. 32.8 percent.
d. 38.0 percent.
8. Refer to the table above. If 2013 is the base year, then the inflation rate in 2013 was
Select one:
a. 24.7 percent.
b. 54.0 percent.
c. 32.8 percent.
d. 38.0 percent.
Thanks!
Year
Price of Pork
Price of Corn
2012
$20 per pound
$12 per bushel
2013
$25 per pound
$18 per bushel
Explanation / Answer
1. The typical consumer’s basket consists of 4 pounds of pork and 3 bushels of corn. The cost of the basket in 2012 was (4 * $20) + (3 * $12) = $116.
2. The cost of the basket in 2013 was (4 * $25) + (3 * $18) = $154.
As we know CPI = [(Current period price of market basket) / (Base year price of market basket)] * 100
3. If 2012 is the base year, then the CPI for 2012 was ($116 / $116) * 100 = 100.
4. If 2012 is the base year, then the CPI for 2013 was ($154 / $116) * 100 = 132.76 = 132.8.
5. If 2013 is the base year, then the CPI for 2012 was ($116 / $154) * 100 = 75.32 = 75.3
6. If 2013 is the base year, then the CPI for 2013 was ($154 / $154) * 100 = 100.
7. If 2012 is the base year, then the inflation rate in 2013 was
[(difference between CPI of 2012 and 2013 at 2010) / CPI of 2012] * 100 = [(132.8 - 100) / 100] * 100 = 32.8%.
8. If 2013 is the base year, then the inflation rate in 2013 was
[(difference between CPI of 2012 and 2013 at 2010) / CPI of 2012] * 100 = [(100 - 75.3) /75.3] * 100 = 32.8%.
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