Using 2008 as the Base Year, the Simple Price Index

question 115

Short Answer

Using 2008 as the base year, the simple price index for an algebra book in 2009 was computed to be 105. If the price of the book was $50 in 2009, compute the price in the base year.

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Definitions:

Adverse Selection

A situation in markets where buyers and sellers have access to different information, leading to transactions where one party may be at a disadvantage, often discussed in the context of insurance and used cars.

Individual Mandate

A requirement that individuals purchase health insurance or pay a penalty, aimed at ensuring universal coverage in health care systems.

Health Insurance Market

The marketplace where individuals, families, and employers purchase health insurance coverage.

Long-term Care Insurance

Insurance coverage designed to cover the costs of long-term care services, including both medical and non-medical needs for people with a chronic illness or disability.