Answered: The cost of the basket of goods in 2005…

The cost of the basket of goods in 2005 is $550 and the cost of the basket of goods in 2011 is $700. If 2005 is used as the base year, the price index for 2011 is: a) 127.2 b) 155 c) 78.5 d) 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Q26 MCQ

The cost of the basket of goods in 2005 is $550 and the cost of the basket of goods in

2011 is $700. If 2005 is used as the base year, the price index for 2011 is:

a) 127.2
b) 155
c) 78.5
d) 100

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