If the Price Index Is 100 in the Base Year

question 196

Multiple Choice

If the price index is 100 in the base year, and 95 in the next year, what happened to prices?

• A) Prices increased by 5%.
• B) Prices decreased by 5%.
• C) Prices increased by 95%.
• D) Prices decreased by 95%.
• E) Prices did not change.

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Definitions:

Sigmund Freud

Originating from Austria, this neurologist created psychoanalysis, a therapeutic approach to address mental illness via conversation with a psychoanalyst.

Psychology

The scientific study of the mind and behavior, exploring various aspects from biological foundations to social influences.

Study of Consciousness

The examination of the nature and properties of the state of being aware of and able to think about oneself and the environment.

John Watson

An American psychologist who is considered one of the founders of behaviorism, emphasizing the study of observable behaviors rather than the mind.