Suppose That 1983 Is the Base Year for the Consumer

question 39

Multiple Choice

Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2008 the CPI was 220.What does this "220" mean?

• A) What cost $100 in 1983 on average cost 2.20 times as much in 2008.
• B) What cost $100 in 1983 on average cost $220 more in 2008.
• C) What cost $100 in 1983 on average cost 0.22 times as much in 2008 (that is, it cost $22 in 2008).
• D) What cost $100 in 1983 on average cost $22 more in 2008.

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Definitions:

Theoretical Background

The foundation of existing theories and concepts that support a new study, idea, or research approach.

Key Concepts

Fundamental ideas or principles that form the foundation for understanding a subject or discussion.

Cognitive Distortions

Faulty or biased ways of thinking that are often negative and lead to inaccurate perception of reality.

Behavioral Technique

A method used in psychology to modify behavior through conditioning processes.