In Computing a Price Index

question 387

Multiple Choice

In computing a price index,

• A) the most recent year is always set equal to 100.
• B) both the quantities in the market basket and the prices change from year to year.
• C) the quantities in the market basket stay the same while the prices differ.
• D) the base year must be one for which the inflation rate was zero.

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Definitions:

Cones

Photoreceptor cells in the retina that are responsible for color vision and functioning in well-lit conditions.

Rods

Photoreceptor cells in the retina of the eye that are responsible for vision at low light levels.

Night Vision

The ability to see in low light conditions, either naturally through biological adaptations or through the use of technological aids.

Fovea

A tiny pit located in the macula of the retina that is responsible for sharp central vision.