If the Average Price Level in 2002 Was 1

question 74

Multiple Choice

If the average price level in 2002 was 1.25 relative to the base year in 1992, then:

• A)a dollar in 2002 bought just 80 percent of the goods and services that a dollar bought in 1992.
• B)average prices were 80 percent higher in 2002 than in 1992.
• C)a dollar in 2002 bought 25 percent more goods and services than a dollar bought in 1992.
• D)average prices were 125 percent higher in 2000 than in 1992.
• E)purchasing power rose 25 percent between 1992 and 2002.

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Definitions:

Synthesis

The process of combining smaller molecules or elements to form larger, more complex products.

Reaction Mechanism

A detailed step-by-step description of the process by which reactants are converted into products in a chemical reaction.

Organic Product

A molecule that has been formed as a result of an organic chemical reaction, often comprising carbon-based compounds.

Major

The principle or larger part of something, often used to denote the main product or outcome in a chemical reaction.