Price Indexes Like the CPI Are Calculated Using a Base

question 29

Multiple Choice

Price indexes like the CPI are calculated using a base year. The term base year refers to:

• A) the first year that price data are available.
• B) any year in which inflation was higher than 5 percent.
• C) the most recent year in which the business cycle hit the trough.
• D) an arbitrarily chosen reference year.

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Definitions:

Taste Receptor Cells

Specialized cells located on the taste buds that detect and respond to chemical substances, enabling the sense of taste.

Papillae

Knoblike elevations on the tongue, containing the taste buds. (Singular: papilla.)

Synesthesia

A condition in which stimulation of one sense also evokes another.

Different Smells

The perception of odors, which is processed by the olfactory system in the brain.