
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:(16.2%
Transportation
Food and drinks
The Components of the Consumer Price Index
SOURCE: U.S. Bureau of Labor Statistics
The CPI is a measure of the cost of living for consumers. The government publishes monthly and annual figures on the Consumer Price Index.
The Consumer Price Index has a base period, 1982-1984, from which to make comparisons. The CPI for the base period is 100. The CPI for October 2010 was 218.9. This means that $100 in the
period 1982-1984 had the same purchasing power as $218.90 in October of 2010.
An index number is actually a percent written without a percent sign. The CPI of 218.9 for October 2010 means that the average cost of consumer goods at that time was 218.9% of their cost in the
1982-1984 period.
The table below gives the CPI for various products in 2009.
Product
CPI
All items
214.5
Food and beverages
218.2
Housing
217.1
Apparel
120.1
Transportation
179.3
Medical care
375.6
Recreation
114.3
Education and communication
127.4
The Consumer Price Index, 2009
Watch the video below then answer the question.
Consumer Price Index

Transcribed Image Text:Solve the following.
Of the items listed in the table above, are there any items that cost more than one-and-one-half times as much in 2009 as they cost during the base years, but less than twice as much as they cost
during the base period? If so, which ones? (Select all that apply.)
O food and beverages
housing
apparel
transportation
medical care
recreation
O education and communication
none of these
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