If the Consumer Price Index Was 100 in the Base

question 53

Multiple Choice

If the consumer price index was 100 in the base year and 107 in the following year, then the inflation rate was

• A)-7 percent.
• B)7 percent.
• C)1.07 percent.
• D)0.7 percent.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision.

Self-Control Problem

The difficulty individuals face in resisting short-term temptations to meet long-term goals.

Behavioral Economists

Experts who analyze the influence of psychological, cognitive, emotional, cultural, and social factors on the economic choices of persons and entities.