A gallon of milk cost $2.48 in 1995, while a gallon of milk cost $3.57 in 2011. Using 1995 as the base year, what is the gallon of milk index number for 2011?
A) 0.69 B) $0.69 C) $1.44 D) 69 E) 144
The breakfast fixed market basket consists of one gallon of milk, one pound of sliced bacon, and one dozen eggs. In 1995, the gallon of milk cost $2.48, the pound of sliced bacon cost $1.99, and the dozen eggs cost $0.93. In 2011, the gallon of milk cost $3.57, the pound of sliced bacon cost $4.63, and the dozen eggs cost $1.77. What is the breakfast fixed market basket price index in 2011 using 1995 as the base year?
A) 185 B) 54 C) $1.85 D) $0.54 E) 0.54
In-state tuition and fees at Virginia Commonwealth University (VCU) was $9517 for the 2011–12 academic year. The CPI for 2011 was 224.9 and the CPI for 2001 was 177.1. What is the 2011–2012 tuition in 2001 dollars?
A) $1270 B) $1642 C) $7494 D) $7875 E) $12,086
In 2011, consumers tended to buy bigger-screen TV sets than they did in the 1982–84 base period. How does the CPI reflect this fact?
A) It doesn't because it uses a fixed market basket.
B) It can't possibly because, if it did, the price of TVs would have gone up instead of down.
C) Every month, there is a new Consumer Expenditure Survey, which records what consumers actually buy, so the market basket changes every month.
D) The Bureau of Labor Statistics (BLS) adjusts the actual price to subtract out the part that pays for improved quality.
E) The BLS corrects by using a different base period.