The Year That Is Chosen as the Point of Reference

question 196

Multiple Choice

The year that is chosen as the point of reference for comparison of prices in other years is known as the

• A) base year.
• B) price index.
• C) purchasing power.
• D) consumer price index.

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Definitions:

Bureaucracy

A system of government in which most of the important decisions are made by state officials rather than by elected representatives, often characterized by a hierarchical or organizational structure.

Discretion

The freedom to decide what should be done in a particular situation; often refers to the judgment and decisions made by individuals in positions of authority.

Rule-making Authority

The power granted to governmental agencies or bodies to create regulations and standards.

Elite Democrats

A reference to members of the Democratic Party who hold significant influence, power, or status within the political, social, or economic spheres.