Let Us Reconsider the Case of Ronald in Problem 4

question 11

Multiple Choice

Let us reconsider the case of Ronald in Problem 4. Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ = 15. If in the current year, the price of good 1 is $1 and the price of good 2 is $1, and his current consumptions of good 1 and good 2 are 25 and 20 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

• A) 0.67
• B) 1.50
• C) 0.25
• D) 0.50
• E) 1

---

Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over repeated applications.

Twin Study

A research method in behavioral genetics that compares the similarity between monozygotic (identical) and dizygotic (fraternal) twins to estimate the genetic contribution to traits and disorders.

Bipolar Disorder

A psychological disorder identified by significant mood swings, encompassing both periods of high emotion (either mania or hypomania) and episodes of depression.

Monozygotic Twins

Identical twins that develop from a single fertilized egg, sharing 100% of their genes.