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:

Intellectual Abilities

The capacity to perform mental activities involving reasoning, problem-solving, and abstract thinking.

Goal-Directed Adaptive Behavior

Behavior that is focused on achieving a specific outcome or goal, showing flexibility and adjustment to changes.

Predictive Validity

The extent to which a score or measure can predict the future performance or behavior of subjects.

Content Validity

The extent to which a test samples the behavior that is of interest.