If the Price Index Is Now 120, It Means

question 29

Multiple Choice

If the price index is now 120, it means:

• A)​prices are 120 percent higher than in the base year.
• B)​prices are 20 percent higher than in the base year.
• C)​prices are 1.2 percent higher than in the base year.
• D)​nominal GDP will be less than real GDP.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Significant Influence

The power to participate in the financial and operating policy decisions of a business, without having control over those policies.

Policy-Making Decisions

The process involving the development and implementation of strategies and guidelines to govern the actions and future direction of an entity.

Voting Power

The total number of votes that can be cast in decision-making processes within a corporation, often directly linked to the amount of shares held.