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Question: table 2131 suppose a simple economy produces three goods only...

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Table 21.3.1 Suppose a simple economy produces three goods only The price and output data for some selected years are shown below Price (dollars) Price (dollars) Quantity (n Quantity (number) 2002 Pop Crackers Cucumbers 1.25 2.00 1.10 2.10 3.00 190 22) Refer to Table 21.3.1. The reference base period is 2002. The CPI in 2012 is 22) A) 100. B) 63. C) 158. D) 1,340. E) 96 23) Refer to Table 21.3.1. The reference base period is 2002. Which one of the following statements is 23) true? A) It costs 158 times more in 2012 than it does in 2002 to buy the same market basket. B) The inflation rate in 2012 is greater than the inflation rate in 2002. C) The inflation rate in 2002 is greater than the inflation rate in 2012. D) From 2002 to 2012, the cost of the market basket rose by 58 percent. E) All prices have risen by the same amount. 24) The Consumer Price Index measures inflation by using 24) A) all goods and services that are produced using a current-year basket. B) all goods and services that are produced using a base-year basket. C) only consumption goods and services purchased using a base-year basket. D) only consumption goods and services purchased using a current-year basket. E) A and D.
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