If the Price Index in Year a Is 130, This

question 148

Multiple Choice

If the price index in year A is 130, this means that:

• A) Prices in year A are on average 130 percent higher than in the base year
• B) Prices in year A are on average13 times that in the base year
• C) Prices in year A are on average 30 percent higher than in the base year
• D) Nominal GDP is 130 percent higher than real GDP in year A

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Definitions:

Recycling

The process of converting waste materials into new materials and objects, aiming to reduce consumption of fresh raw materials, decrease energy usage, reduce air pollution (from incineration) and water pollution (from landfilling).

Tax Per Unit

A fixed amount charged as tax on a single unit of a good or service.

Good Citizen

An individual who acts responsibly, ethically, and with social awareness within their community.

Financial Incentives

Financial rewards provided to influence the behavior or decisions of individuals or organizations.