The Reference Base Period Is 2002

question 55

Multiple Choice

The reference base period is 2002. A consumer price index of 122 in 2014 means that

• A)prices of consumer goods have gone up by a factor of 12.2.
• B)if the price of a good was $100 in 2002, its price in 2014 is $122.
• C)prices of consumer goods have more than doubled.
• D)the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2014.
• E)the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2014 than it was on average during 2002.

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Definitions:

Democratic Government

refers to a system of governance where power is vested in the hands of the people, who exercise power directly or through elected representatives, based on principles of freedom, equality, and justice.

Exploitive Nature

Refers to actions or systems that take unfair advantage of people or resources for personal or organizational gain.

Economic System

The structure and methods by which a society or country organizes and allocates its resources, goods, and services.