In Computing the Consumer Price Index,a Base Year Is Chosen

question 52

Multiple Choice

In computing the consumer price index,a base year is chosen.Which of the following statements about the base year is correct?

• A)The base year is always the first year among the years for which computations are being made.
• B)It is necessary to designate a base year only in the simplest case of two goods;in more realistic cases,it is not necessary to designate a base year.
• C)The value of the consumer price index is always 100 in the base year.
• D)The base year is always the year in which the cost of the basket was highest among the years for which computations are being made.

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Definitions:

Job Choices

The various employment options available to individuals based on their skills, interests, values, and economic needs.

Negative Information

Unfavorable news, data, or feedback that can impact perceptions, decisions, and actions within an organization or relationship.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance, attitude, and motivation.

Unrealistic Expectations

Expectations that are not grounded in reality, often being too high or idealistic, which can lead to frustration and disappointment.