If the Cost of a Market Basket Is $150 in 2004

question 33

Multiple Choice

If the cost of a market basket is $150 in 2004 and $200 in 2005, the price index for 2004 using 2005 as the base year is _____.

• A) 0.75
• B) 1.00
• C) 1.33
• D) 1.50

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Definitions:

Motivation

The processes that energize, direct, and sustain behavior towards achieving a goal.

Direction

The course along which something or someone moves, proceeds, or is aimed.

Deprivation

A state of lacking or being denied something considered to be a necessity or a benefit, often leading to adverse effects on health or well-being.

Needs

Basic requirements for human survival and psychological well-being, such as food, water, and belonging.