1. What is the base year used to calculate the official Consumer Price Index?
2. What was the Consumer Price Index in January of the year you were born?
3. What is the difference between the index number for the year you were born and the Consumer Price Index for January of 2012?
4. Each year, Lisa uses two units each of books, coffee, and mobile phone service. Use the following table, calculate the cost of Lisa's market basket containing Books, Coffee, and Mobile Phone Service for each year.
Year Price of Books ($) Price of Coffee ($) Price of Mobile Phone Serivce
2003 4 5 10
2004 5 6 11
2005 6 7 12
5. Use the same table and information about Lisa's spending habits for #4 for this problem. Use 2003 as a base year. Using the table information, calculate the price index numbers for 2004 and 2005.